2017 was judged a year during which the world economy strongly recovered with global GDP growth of 3.6%, up 0.6% compared to 2016 - the highest level in the past decade since 2008 global financial crisis. Most of the world economies had a solid recovery with economic growth of developed economies reaching 2.2%, and developing countries achieving 4.6%. The US, the EU, Japan, China and Russia continued to lead the recovery of global economic growth. Good moving of the world economy also created momentum for the world financial market to have significant development steps. The low interest rate policy and long-term government bond yields decreasing trend of large economies boosted capital inflows into the securities market or return to emerging and developing markets. The stock markets grew positively with most of major global stock indexes advancing higher than the beginning of the year, in which the Asian market is in leading position with an average growth rate of over 20%, followed by the US with a growth rate of over 15%
.The global economy recovery and solid macro fundamentals with low inflation rate, stable exchange rate and foreign exchange market, surplus balance of international payments, and public debt under control, improved business environment, and enhanced national competitiveness has raised Vietnam economy growth to 6.81% - the highest increase in the past 10 years. Good economic growth and the Government commitment to removing barriers to investment, supporting private sector together with positive effects of state capital outflows, state-owned enterprises IPO and big enterprises listing have attracted capital flows into the securities market, especially foreign capital, creating firm foundation for a strong and sustainable development year of Vietnam securities market. It can be said that 2017 was a milestone year in terms of both quality and quantity of the securities market with the launching of derivatives market and great development of the cash market. Market capitalization reached VND 3.5 million billion, up 80.5% compared to 2016 and equivalent to 77.2% of GDP; market liquidity increased by 66% from 3 trillion VND per session in 2016 to 5 trillion VND per session in 2017. VN-Index and HNX-Index rose 48% and 46% respectively, achieving the highest level in the past 10 years, making Vietnam one of the top 5 markets in the world and top in Asia.
The market success in 2017 was the results of important contribution of market infrastructures, including VSD. Adhering to the motto “constantly developing for the market soundness”, in 2017, VSD ensured implementation of business operations at VSD safely, efficiently and smoothly for the cash market, launching clearing and settlement system under CCP model for the derivatives market, shifting cash payment function for Government bond transactions from the commercial bank to the State bank of Vietnam; strictly complied with prevailing regulations and laws, and did not cause any disrupting problems for the market operations; participated in refining market legal framework and revising business processes and guidelines to be in line with requirements of legal documents and market development needs; diversified services and products according to international practice, providing practical support for SOEs equitization process and state capital outflows. With all the achievements, VSD is proud to contribute significantly to the sustainable growth of Vietnam securities market in 2017.
Despite facing numerous challenges due to multifaceted effects of the world economy such as geopolitical instability, trade protectionism and tightened monetary policy of big countries, in 2018, the world economy is forecasted to continue growth thanks to recovery of trade and investment activities. Domestically, year 2018 is expected to be a more thriving year when conditions are basically favorable for growth. In 2018, the Government focuses on refining regulatory framework, restructuring the securities market, diversifying investor base, improving market demand and improving capacity of intermediaries to meet requirements of capital mobilization for the economy, especially medium and long-term capital. Against this circumstance, VSD is committed to enhancing its financial strength, improving its organizational model, development strategy to 2025 and vision to 2030 so as to better perform its role as the sole agency of the market that provides post-trade and other support services. All our efforts are to respond to and appreciate the support and close direction of regulators at all levels, the trust and support of issuers, members and investors given to VSD on the development path.
On behalf of the Management Board and staff members of VSD, I would like to extend to regulators, issuers, members, partners, investors and readers wishes for health, happiness and success..