While FDI enterprises have significantly contributed to Vietnam's economic growth and exports, their representation in the stock market remains quite limited.

Current statistics show that out of around 1,600 listed and registered companies, only ten FDI enterprises are active in the stock market (six on HOSE, one on HNX and three on UPCOM). This number fails to capture the true potential of the FDI sector, which has long been established and operates effectively in the country.

Addressing the conference on December 9, the chairwoman of the State Securities Commission of Vietnam (SSC), Vu Thi Chan Phuong, said that attracting well-governed FDI enterprises to list on Vietnamese exchanges would help rebalance the sectoral composition and enhance overall market quality.

According to her, quality FDI firms typically operate with more advanced governance models, transparent disclosure and higher compliance with international standards – factors that could elevate benchmarks across the entire market.

She noted that Vietnam's stock market was not simply pursuing scale but also depth and sustainability.

"High-quality FDI enterprises, when listed, will contribute to restructuring the industry composition on the stock market, helping the market develop in a more sustainable and balanced manner," Phuong said.

Beyond industry structure, the regulator views the presence of FDI firms as a way to improve the supply side of the market, creating more investable, transparent and long-term assets for both domestic and foreign investors.

This is particularly important as Vietnam eyes larger inflows of institutional capital following a potential market upgrade.

ESG as a core of corporate capability

If corporate governance is widely seen as the backbone of listed companies, then ESG and sustainability reporting are increasingly regarded as key indicators of how prepared Vietnamese firms are for long-term development.

At the Vietnam Listed Company Awards (VLCA) 2025, the sustainability report category once again recorded strong growth in the number of companies passing the preliminary round, sending a clear signal that ESG is no longer limited to a small group of pioneers. Instead, it is becoming a mainstream requirement for listed enterprises.

Globally, integrating ESG information into annual reports has become standard practice, reflecting the close link between sustainable development, operational efficiency and profitability.

In Vietnam, both domestic and international investors are paying closer attention to green investment opportunities, particularly as ESG has become an important risk-assessment criterion before investment decisions are made.

The SSC chairwoman emphasised that upgrading ESG reporting would do more than help companies attract capital.

Improving ESG disclosure would support market expansion and strengthen long-term competitiveness for enterprises, she said, adding that this was an essential step as Việt Nam integrates more deeply into global capital markets.

To support this transition, the Ministry of Finance has issued a Green Taxonomy while the SSC is working with relevant agencies to roll out ESG disclosure handbooks and strengthen international cooperation.

These efforts aim to help Vietnamese companies better approach and apply emerging global standards.

In practice, a growing number of listed companies have begun adopting international frameworks such as GRI, TCFD, IFRS S1 and IFRS S2. These standards allow firms to gradually integrate environmental, social and governance factors into risk-management systems and long-term business strategies.

This shift suggests that ESG is moving beyond a communications exercise and becoming part of corporate operations and decision-making. Companies applying these frameworks tend to have clearer data flows, better risk oversight and stronger engagement with long-term investors.

However, challenges persist. The gap between leading firms and the broader market remains significant. Many companies still rely on qualitative ESG disclosures, lacking quantitative indicators on emissions, energy use, occupational safety or supply-chain management.

For responsible investment funds, such quantitative ESG data is often a decisive input in capital-allocation decisions.

Higher standards

Experience from VLCA 2025 highlights a crucial reality: a market upgrade does not mean that all companies automatically benefit from international capital inflows.

When Vietnam enters the emerging-market phase, the market will operate under stricter standards where annual reports, corporate governance and ESG form three mandatory pillars.

Enterprises that fail to adapt may find it harder to access foreign capital, while those capable of meeting higher transparency and sustainability benchmarks could gain a clear advantage.

From a regulatory perspective, the SSC reaffirmed its commitment to accompanying the market through continued legal reforms, implementation of major upgrade initiatives, restructuring of the investor base, development of the fund management industry and accelerated digital transformation in supervision and enforcement.

Strengthening market discipline and transparency would remain a core objective.

In this context, VLCA 2025 is no longer merely an award programme. It is increasingly seen as a movement gauge for listed companies navigating the transition toward an emerging market, one where hard infrastructure such as the KRX trading system is largely in place but where soft infrastructure in governance and ESG will ultimately determine who succeeds in the next stage of Vietnam’s capital-market development.

Nasdaq expresses readiness to support Vietnam following stock market upgrade

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