Government aims to bring stock market capitalization to 120% of GDP by 2028

Stock market capitalization is targeted to reach about 120% of GDP by 2028, according to Deputy Prime Minister Nguyen Van Thang, as the government seeks to establish a long-term capital mobilization channel. In a briefing to Parliament during the socio-economic discussion on April 21, Deputy Prime Minister Nguyen Van Thang spent substantial time outlining the proposals and comments from deputies, while underscoring policy directions aimed at achieving high and sustainable growth, tied to reform of the growth model and the formation of new growth drivers. According to the Deputy Prime Minister, high and sustainable growth is a central task within the country’s long-term strategic orientations. However, this remains a major challenge amid volatile global economic conditions, while Vietnam’s economy is highly open. "Macro stability is a prerequisite, a foundation for achieving high growth and maintaining it in the long term," he said, comparing growth and stability to "two wings of a bird" that must be closely connected and mutually supportive. Regarding the transformation of the growth model, this is a mandatory requirement to achieve rapid, sustainable development and to overcome the middle-income trap. From 2026 to 2030, the government will implement 11 groups of tasks with 92 specific tasks, focusing on three pillars: science and technology, innovation, and digital transformation as the main drivers; developing new growth engines such as the digital economy, green economy, and circular economy. On macro policy management, the government will continue close coordination between monetary and fiscal policy. In a context where monetary policy space is narrowing, fiscal policy will be expanded in a targeted and prudent manner, with a plan to raise the budget deficit to about 5% of GDP in 2026–2030, prioritizing developmental investment. In parallel, the government will push for capital market development, targeting a stock market capitalization of about 120% of GDP by 2028. For public investment, the government requires alignment of progress with quality, prioritizing national key projects, and aiming to reduce the number of projects by at least 30% compared with the previous period to address dispersion and inefficiency. Regarding administrative reform, the government aims to cut at least 50% of time and compliance costs, while reviewing and removing unnecessary business conditions to create a more favorable environment for enterprises and citizens.