FTSE Russell confirms Vietnam meets all criteria for an upgrade from "frontier" to "emerging market" status, but a review early next year is still required.
The Vietnamese stock market ended the week down nearly 7 points, marking its fourth consecutive decline, despite low trading volume and support from Vingroup shares.
The VN-Index fell nearly 6 points as the market entered a "news vacuum," driving liquidity down to under 28,000 billion VND, its lowest level in two months.
Prime Minister Pham Minh Chinh has directed the State Bank of Vietnam to implement measures to stabilize the gold market and reduce the disparity between domestic and international gold prices.
Vietnam has met the FTSE upgrade criteria through reforms designed to facilitate foreign investment flows into the market, according to Finance Minister Nguyen Van Thang.
Vietnam's derivatives market will add a new product based on the VN100 index, expected to start trading in October, breaking the VN30 futures contract's monopoly.
Domestic institutional investors account for half of the trading volume in the past 4 months, demonstrating their growing influence in leading the stock market.
Prime minister Pham Minh Chinh has requested the state bank governor to report on the current situation and solutions for managing the monetary, gold, and exchange rate markets.
After a five-month rally, SGI Capital predicts a potential 10-15% correction in the Vietnamese stock market, bringing the VN-Index down to 1,400-1,500 points.
