During a meeting with FTSE Russell on 17/7, Minister of Finance Nguyen Van Thang affirmed Vietnam's commitment to reforming its capital market, enhancing operational efficiency, and progressively meeting the criteria for a stock market upgrade.
The Minister expressed confidence that with determined reforms and international support, Vietnam's stock market will soon meet the upgrade requirements, becoming a desirable investment destination in the region.
He emphasized that a developed stock market is essential for attracting long-term capital. Upgrading the market from frontier to emerging aims to create a fair, transparent, and efficient environment.
A market upgrade is a key objective for the Vietnamese government. Authorities are working to satisfy the criteria for the market upgrade assessment in September.
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Minister of Finance Nguyen Van Thang at the meeting with FTSE Russell representatives on 17/7. Photo: MOF |
Minister of Finance Nguyen Van Thang at the meeting with FTSE Russell representatives on 17/7. Photo: MOF
Minister Thang added that the Ministry of Finance is revising regulations on foreign ownership ratios, eliminating unsuitable provisions. They are also developing regulations for securities offerings and issuance to enhance market quality and expand market capitalization.
The list of conditionally invested business sectors is under review to reduce restricted areas, facilitating greater foreign investor participation.
The Ministry of Finance is collaborating with the State Bank of Vietnam to streamline processes related to foreign investment activities. They are also increasing the use of digital technology in document processing, licensing, and market surveillance for increased transparency, automation, and reduced processing times.
The Ministry is also developing a legal framework for foreign investors to access exchange rate risk hedging products and implementing a central counterparty (CCP) mechanism from early 2027, based on the KRX system launched in May.
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FTSE Russell representatives speaking at the meeting on 17/7. Photo: MOF |
FTSE Russell representatives speaking at the meeting on 17/7. Photo: MOF
FTSE Russell is one of the world's three leading index providers, including MSCI, FTSE Russell, and S&P Dow Jones Indices, providing benchmarks for international investors.
According to Gerald Toledano, Global Head of Equities and Multi-Asset Product Management at FTSE Russell, the organization is working with the State Bank of Vietnam to establish indices to help investors manage financial risks more effectively. They are also ready to support Vietnam in updating its market infrastructure to attract greater international investment.
An upgrade is seen as a significant boost for Vietnam's capital market, increasing access to foreign investors. The market is expected to achieve a large capitalization and attractive liquidity comparable to many countries with similar levels of development. This could bring $25 billion in new investment from international investors into Vietnam's market by 2030, according to World Bank estimates.
Phuong Dung
