A delegation from the Ministry of Finance is visiting and working in the United Kingdom. During a meeting with the London Stock Exchange (LSE) on 15/9 in London, Finance Minister Nguyen Van Thang said that the Vietnamese government has recently focused on implementing solutions to upgrade the stock market.

"To date, Vietnam has met the FTSE's upgrade criteria through strong reforms and decisive policies, such as the issuance of many synchronous mechanisms and policies that take immediate effect to facilitate foreign investment flows into the Vietnamese stock market," the minister said.

The project to upgrade Vietnam's stock market was approved by the government last week. Accordingly, Vietnam aims to upgrade from a frontier market to a secondary emerging market of FTSE Russell in 2025.

To be upgraded, Vietnam must satisfy 9 major mandatory criteria and 2 non-mandatory reference criteria. These criteria must be considered by market rating organizations based on practical experience and positive feedback from foreign investors.

FTSE Russell is a major company owned by the London Stock Exchange Group (LSEG). FTSE Russell provides index services, data, and market analysis. FTSE Russell's index products are widely used globally by clients including fund management companies, financial institutions, banks, and other investment organizations.

FTSE Russell provides indexes for 94 of the top 100 asset management companies in the world, managing nearly $16 trillion in assets. Currently, FTSE evaluates 47 countries and their stock markets, covering 90% of global capital markets.

Representatives of the Vietnam Stock Exchange (VNX) signed a Memorandum of Understanding (MOU) with FTSE International Limited (FTSE) on 15/9. Photo: MOF

Representatives of the Vietnam Stock Exchange (VNX) signed a Memorandum of Understanding (MOU) with FTSE International Limited (FTSE) on 15/9. Photo: MOF

At the meeting, the minister proposed several directions for cooperation between Vietnam and the LSE in the coming period. Specifically, Vietnam wishes to increase the exchange of experiences in building and completing the legal framework, market supervision mechanisms, applying international standards on corporate governance, information disclosure, and promoting environmental, social, and governance (ESG) growth, thereby improving transparency, safety, and global integration.

At the same time, Vietnam is interested in learning from experience in developing new products such as green bonds, sustainable bonds, and derivative securities instruments. The minister proposed joint investment promotion programs and promotional activities to build and connect Vietnamese businesses with international investors, especially in the UK and Europe.

In addition, Vietnam also wants to receive shared experiences in training and improving market awareness and capacity for financial and securities human resources, and applying financial technology (fintech, AI, blockchain) to contribute to improving market operation efficiency.

In response to the minister's proposal, Ms. Julia Hoggett, CEO of the LSE, affirmed her confidence in the development of the Vietnamese stock market in the coming period. She said that the LSE will continue to increase cooperation to support Vietnam's stock market in upgrading to an emerging market.

Ms. Hoggett expects that the cooperation between the two sides will have further new developments and that the LSE will be an effective "gateway" for the Vietnamese market to connect with many other markets around the world.

She also discussed cooperative initiatives in the context of Vietnam actively implementing solutions to upgrade the stock market: cooperation between FTSE Russell and the State Securities Commission of Vietnam to remove obstacles in the upgrade criteria; signing an MOU for index development cooperation between VNX and FTSE Russell.

During the working program, the Vietnam Stock Exchange (VNX) signed a Memorandum of Understanding (MOU) with FTSE International Limited (FTSE), officially establishing a strategic partnership between the two sides. The signing aims to improve capital market infrastructure and promote Vietnam's international integration.

On this occasion, the minister also invited the leaders of the LSE and FTSE Russell to visit Vietnam and work with the Ministry of Finance and the State Securities Commission to gain more information about the development, potential, and investment opportunities in the Vietnamese stock market.

By the end of August, the total market capitalization of stocks reached nearly 352 billion USD, equivalent to 79.5% of estimated GDP in 2024. Market liquidity increased significantly, with some sessions having a trading value of over 3 billion USD. Since the beginning of the year, the average trading value has reached over 1.1 billion USD per session, ranking among the most active in the ASEAN region.

Phuong Dung