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Finance Minister explained

According to Minister Ho Duc Phuc, following 2021, the first quarter of 2022, stock market (The stock market) basically kept the positive and stable rhythm.

After setting a new peak, by the end of the first quarter of 2022, VN-Index only slightly down 0.4% compared to the end of last year. The new market has been under downward correction pressure and strong volatility since the end of March until now.

The VN-Index closed on April 25 at 1,310.92 points, so it has adjusted down by more than 200 points compared to the end of March.

This is a relatively strong correction of the Vietnam stock market under the combined influence of many different domestic and international reasons, both objective and subjective.”, affirmed the Minister.

Stock market plummeted: Finance Minister explained - 1

Minister of Finance Ho Duc Phuc.

Specifically, according to the Minister, in the world, increasing inflation pressure has caused major central banks to tighten policies and most notably the US Federal Reserve (FED) has raised interest rates. operating after 3 years.

At the same time, the Russian-Ukrainian conflict situation further increases the risks for the recovery economy especially when energy prices, input material prices increase sharply, etc.

That has affected many stock markets around the world, causing many markets to drop sharply.

Vietnam stock market was no exception when selling pressure gradually increased at the end of the first quarter and corrected sharply since the end of March after a long period of continuous increase.

In addition to the external macro impacts, the stock market is also partly psychologically affected when the authorities and management agencies strictly handle cases on the stock market and individual corporate bonds.

Therefore, the Vietnamese stock market’s sharp decline was partly similar to the general decline in the world, for example, during a sharp drop (more than 68 points) on April 25, major markets in the world also fell. very deep point.

Besides, the correcting pressure after a long uptrend and the cautious sentiment in the market before single incidents caused the market to fluctuate strongly in the downward direction.

The recent actions to strictly handle violations in the stock market and individual corporate bonds are just isolated incidents that only have an impact on the market’s sentiment in the short term.

The resolute handling of violations may affect investor sentiment in the short term, causing the market to slow down, but it is an effort to make the market grow more transparent and sustainable.‘, the Minister affirmed.

Also according to Minister Ho Duc Phuc, in order for the stock market to develop stably, healthily, transparently and sustainably in the coming time, the Ministry of Finance will have solutions to prevent, that is, “pre-prevention, post-check”. to protect the interests of investors, as well as companies operating in the market in the most equal, transparent and correct manner.

Accordingly, the Ministry has directed to continue restructuring securities companies, fund management companies to review, classify, check on the spot, develop plans for each company to take measures to handle the situation. ; continue to develop and diversify investment fund types in order to improve the quality of investment demand, towards sustainable investment demand.

Along with that, implementing solutions to ensure a smooth transaction system, minimizing transaction congestion; complete the project of information technology modernization; Researching the legal framework for the development of new services and products on the Vietnamese stock market.

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