### The Launch of the Vietnam Stock Exchange (VNX)
The Vietnam Stock Exchange (VNX) officially commenced operations on Saturday, marking a significant milestone in the evolution of the Vietnamese financial landscape. This establishment is not just a new name; it represents the culmination of a strategic reorganization of the Hanoi Stock Exchange (HNX) and the Ho Chi Minh Stock Exchange (HoSE), shifting the domestic stock market into a new developmental phase.
### Key Figures and Structure
Hosted in Hanoi, the VNX is a state-owned enterprise with a charter capital of VND 3 trillion (approximately US$130 million). This new exchange operates under a parent-subsidiary model, with HNX and HoSE functioning as its two subsidiaries. The HNX takes charge of organizing markets for derivatives, bonds, and other securities, while the HoSE deals predominantly with stocks.
### A Unified Market Framework
At the launch ceremony, Deputy Prime Minister Le Minh Khai emphasized that this unification will streamline the organizational model and enhance mechanisms and policies surrounding the domestic stock market. With robust information technology infrastructure set to bolster operations, the VNX aims to establish a more cohesive and effective marketplace for investors.
### Attracting Investment and Enhancing Global Integration
The formation of the VNX is projected to attract both domestic and foreign investments, expanding the market’s size and bolstering its international standing. Deputy PM Khai highlighted this initiative as essential for creating favorable conditions for Vietnam’s integration into the global financial community. Developing the stock market is recognized as a key strategy for enhancing medium- and long-term capital mobilization, central to Vietnam’s economic ambitions.
### Historical Context and Future Strategies
Over the past 25 years, Vietnam’s stock market has consistently evolved, becoming a vital channel for capital mobilization and fostering financial market growth. The Deputy PM has tasked the Ministry of Finance with revisiting the performance of the ‘strategy for development of Vietnam’s stock market in the 2011-20 period’ and formulating a new strategy for the ensuing decade. This strategic foresight aims to bolster Vietnam’s competitiveness and narrow the gap with global stock market standards.
### Emphasizing Corporate Bonds
VNX Chairman Nguyen Thanh Long announced that the exchange is set to implement seven professional statutes along with a plan to restructure the corporate bond market. These initiatives, expected to be unveiled soon, will further strengthen the operational framework and expand the breadth of available investment options.
### Market Performance Highlights
In recent times, the Vietnamese stock market has exhibited impressive growth. The benchmark VN-Index has recently surpassed 1,500 points, marking its highest level since inception and demonstrating a remarkable 36% rise since the start of the year. Additionally, in a sign of growing market confidence, the average trading value during the year reached VND 37.2 trillion (US$1.61 billion) per session, a figure more than double that of 2020.
### Surge in Investor Participation
The number of newly-opened investor accounts has skyrocketed, approaching 1.1 million in the January-October period alone—outpacing the cumulative figures recorded from 2017 to 2020. This surge highlights the increasing public interest in market participation and a growing awareness of investment opportunities among Vietnamese citizens.
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