The Vietnam Stock Exchange (VNX) was officially put into operation on Saturday based on the re-arrangement of two local stock exchanges, marking a new development phase for the domestic stock market.

At the launch ceremony held by the Ministry of Finance in Hanoi, Deputy Prime Minister Le Minh Khai handed the VNX establishment decision over to Nguyen Thanh Long, chairman of the national stock exchange.

As a company fully owned by the state, the VNX has a charter capital of VND3 trillion (US$130 million) and is headquartered in Hanoi, according to the decision.

The VNX operates under the parent-subsidiary model based on the re-arrangement of the Hanoi Stock Exchange (HNX) and the Ho Chi Minh Stock Exchange (HoSE) as its two subsidiaries.

The HNX is in charge of organizing and operating the markets of derivatives, bonds, and other securities, while the HoSE is responsible for stocks and other securities, the decision said.

The establishment of the VNX will help unify the organizational model, mechanisms, policies, and information technology infrastructure of the domestic stock market, Deputy PM Khai said at the ceremony.

The exchange will help attract more domestic and foreign investments, augment the size and position of the Vietnamese stock market, and create good conditions for integration into the international stock market, Khai said.

The official emphasized that developing the stock market to create a medium- and long-term capital mobilization channel for national economic development is a major and consistent policy of the Party and state.

Over the past 25 years, the Vietnamese stock market has developed steadily, becoming an important capital mobilization channel for the economy and promoting the financial market development, the deputy PM said.

He assigned the Ministry of Finance to direct the State Securities Commission, VNX, and related units to review the performance of the ‘strategy for development of Vietnam’s stock market in the 2011-20 period’ and make recommendations on a similar strategy for the next ten years.

It is imperative to actively integrate into the international financial market, increase competitiveness of Vietnam’s stock market, and gradually narrow the development gap between the domestic and global stock markets, Deputy PM Khai said.

Minister of Finance Ho Duc Phoc promised to include such directions in the national stock market development strategy in the 2021-30 period and to launch action plans to make the strategy a success.

The VNX has prepared seven professional statutes and one scheme to restructure the corporate bond market, which is expected to be issued this month, VNX chairman Long was quoted by the Vietnam Government Portal as saying.  

The benchmark VN-Index on the stock market has recently surpassed 1,500 points, representing the highest mark since it officially came into operation and a 36-percent increase from the beginning of this year. 

The average trading value in January-November topped VND37.2 trillion ($1.61 billion) per session, over two times the figure of 2020, according to official statistics. 

In the January-October period, the number of newly-opened investor accounts neared 1.1 million, higher than the cumulative figure in 2017-20.

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