Market expands in 2023 despite strong turbulence

Investors looking at a digital board showing stock movements inside the headquarters of the Hồ Chí Minh Stock Exchange (HoSE). — VNA/VNS Photo

HÀ NỘI — The Vietnamese stock market experience a bumpy road in 2023, following the general developments of the global market. However, it still recorded stable operations and good liquidity, according to a report from the State Securities Commission (SSC).

In the first half of 2023, the market was flat with liquidity dropping sharply from that of 2022, mainly due to the slowdown in growth of major economies, persistent inflation, prolonged tightening monetary policies and rising geopolitical tension.

The market reversed the course at the beginning of the third quarter of 2023, with the benchmark VN-Index hitting the highest level of the year at 1,245.44 points. At the end of September, the market faced correction pressure but has gradually stabilised recently.

The VN-Index closed November 30 at 1,094.13 points, an increase of 8.6 per cent from the end of 2022. On the Hà Nội Stock Exchange (HNX), the HNX-Index was traded at 226.15 points, up 10.2 per cent.

Entering the third quarter, liquidity also witnessed a significant improvement, with the average transaction value reaching over VNĐ24.6 trillion per session (US$1.01 billion), a gain of 80 per cent from the average transaction level in the first half of year.

The market capitalisation and listing scale continued to expand from the end of 2022. As of November 30, the market capitalisation was nearly VNĐ5.8 quadrillion, a gain of 10.1 per cent over the end of 2022, equivalent to 60.5 per cent of GDP.

Overall, in the first 11 months of 2023, the number of accounts was 355,672 higher than the end of 2022, bringing the total numbers to more than 7.25 million accounts, equivalent to 7.3 per cent of the population and exceeding 5 per cent of the set goal.

Technology investment boost

Deputy Minister of Finance Nguyễn Đức Chi highly appreciated the results that the SSC has achieved in 2023.

The Deputy Minister said that the securities industry has made the right progress towards a transparent, healthy and fair development. Many violations in the market have been subject to maximum administrative sanctions, and criminal violations have been transferred to the investigation agency.

Chi affirmed that the bright spot of this year was the resolute restoration of market order, with no exceptions, forcing market participants to comply with market rules.

In 2024, there are concerns about the global, regional, and domestic economies, including the stock market. This also presents an opportunity for Việt Nam’s stock market to address its weaknesses, purify the market, and develop a safe and sustainable market.

Therefore, the Deputy Minister requested the SSC to coordinate with units, stock exchanges, Vietnam Securities Depository and Clearing Corporation (VSDC) and market members to soon complete the information technology project and managing the KRX trading system.

He also emphasised the focus on improving the legal framework, market supervision, transparency, and fair treatment of violators. Enhancing product quality, preparing for market upgrades, and investing in information technology are also highlighted.

The goal is to create a strong and fair market that serves as an efficient channel for economic growth. — VNS