The increase could be attributed to activities to draw foreign investment into Vietnam, including promotions in major foreign markets such as the US, the UK, Japan and the Republic of Korea.
Such programmes have created an official channel promoting Vietnam’s capital market to foreign firms and investment community, turning the country’s stock market into an attractive destination for foreign investors, according to the State Securities Commission of Vietnam (SSC).
The Ministry of Finance and the SSC have devised strategic adjustments in the implementation of investment promotions.
A long-term strategy and a general plan on investment promotion have been built, with topics suitable for each period and market demand. In-person meetings with foreign investors from key markets are on the increase, forging a relationship between policies and reality via interactions between management agencies, Vietnamese firms and foreign investors.
Even when COVID-19 has delivered a major blow to economies worldwide, the rise of indexes on Vietnam’s stock market has proved its attraction to foreign investors.
Market capitalisation in late September exceeded 6,861 trillion VND (302.07 billion USD), equivalent to 109 percent of the gross domestic product (GDP). The figure stood at only 5,294 trillion VND at the end of 2020.
The SSC believed that the stock market will keep hitting new record highs because of rising capital flows, notably net buying by foreign investors.
The Commission has rolled out various measures to support the market and attract foreign indirect investment influx, including adjusting ownership rate for foreign investors, simplifying administrative procedures for them and extending billing period, among others.
Vietnam's stock market is moving towards meeting world standards, with the goal of getting upgraded to emerging status.
