Vietnam proposes stabilization fund to support stocks
Vietnam plans to create a government-backed fund to support its stock market after declines linked to the Iran war. Influencers would be used for messaging.
The government of Vietnam is considering a suite of aggressive measures to stabilize its domestic stock market following a period of significant volatility linked to geopolitical tensions. According to internal documents, the Ministry of Public Security has proposed the creation of a state-backed stabilization fund and the use of social media influencers to manage investor sentiment after the benchmark index suffered sharp declines.
The proposal, submitted to Prime Minister Pham Minh Chinh, comes in response to a 6.5% drop in the national stock index on March 9. Throughout the month of March, the index fell by a total of 9.3%, making it one of the weakest performers in Asia. Investors have been increasingly concerned about fuel shortages and economic disruptions stemming from the conflict involving Iran, as the country relies heavily on oil imports from the Gulf region.
