Vietnam's Bold Response: Stock Market Stabilisation Amid Global Turmoil

Vietnam is planning measures to support its stock market, including a government-backed stabilisation fund, following sharp declines due to the Iran war. Proposed actions include corporate share buybacks and influencer campaigns. The finance ministry and central bank have been instructed to act on these recommendations.

Vietnam is taking decisive measures to bolster its stock market, which has suffered sharp downturns due to the ongoing conflict between Iran and other nations. The government plans to establish a stabilisation fund supported by state funds, aimed at moderating the market's volatility.

The proposals, originated from the Ministry of Public Security, also include corporate share buybacks and the use of influencers to disseminate positive messaging to counter the investors' concerns. The prime minister has tasked the finance ministry and central bank with implementing these strategies.

The economic impact has raised concerns across Asia, with Vietnam's stock index dropping 9.3% in March. As the government steps in, the measures are seen as crucial for securing Vietnam's market status and preventing further economic instability amid broader regional challenges.