The Ministry of Finance will make great effort to comprehensively restructure the financial market this year to address its shortcomings and ensure sustainable development, officials said.
Legal frameworks will be completed to enable enterprises to raise capital from both overseas and domestic sources, they said.
Management and supervision of authorized agencies will be improved to ensure the safety of the securities market and the national financial security, the Vietnam News Agency said Wednesday.
For the insurance market, the ministry will unveil policies to encourage companies to enter the agriculture, forestry and fishing sectors, and reach out to rural and remote areas that have a large number of low-income earners.
The markets for bonds, shares and financial derivatives will be restructured in line with international regulations to draw more investors, especially financial institutions.
With the g-bond market, Vietnam targets to make interest on the bonds a benchmark for interest rates in the capital, financial and monetary markets.
The ministry will ask financial market administrators to improve the transparency of policies and provide sufficient and timely information to investors, which is aimed to improve the liquidity of the products and services available in the markets.
Ngo Van Tuan, director of the Department of Banking and Financial Institutions said due to many limitations, the local financial markets are vulnerable to fluctuations from outside.
In 2009 when the country’s economy was hit by the global economic crisis, the bond market helped raise only VND20 trillion and US$470 million, compared to the need of VND200 trillion (US$10.47 billion). The securities market, although capitalized at VND669 trillion, three times higher than that in 2008, helped mobilize only VND17.7 trillion, VND2 trillion lower than the 2008 figure.
Tuan said one of the biggest shortcomings of the financial market is its inability to raise and distribute capital efficiently, noting that many of the government’s important plans to restructure the economy did not get enough funds to be implemented on schedule.
Most securities individual traders followed the herb without doing proper research and planning, which resulted in the market volatility, experts said. The real estate and gold markets were also not well managed due to poor coordination between relevant agencies. (VNS)
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