According to Deputy Minister of Finance Nguyen Duc Chi, Vietnam has implemented a wide range of reforms to meet the classification criteria. These include legal and regulatory updates, modernisation of trading and settlement systems, increased transparency, and enhanced access for foreign investors.

Vietnam has fulfilled the fundamental requirements for a market upgrade, and these foundational elements play a vital role in building investor confidence, he affirmed.

Beyond the technical criteria, Chi emphasised the importance of foreign investors’ response and actual experience in the Vietnamese market, such as ease of access, clarity, transparency, and the efficiency of problem-solving processes.

Upgrading the market classification will open the door to large-scale foreign capital inflows, particularly from index-tracking investment funds, said Chi.

To prepare for the September review cycle, he said, the SSC is currently working closely with relevant agencies to accelerate the removal of existing barriers and shortcomings. Many issues have already been included in a concrete implementation roadmap, focusing on improving the account opening mechanism, foreign ownership regulations, payment and fund transfer procedures, as well as ensuring transparency and protecting investors’ rights.

Hoang Van Thu, vice chairman of the SSC, said that under the approved Stock Market Development Strategy to 2030, Vietnam aims to achieve an upgrade by 2025. To realise this goal, the SSC has undertaken focused reforms, improving legal frameworks, technical systems, and strengthening dialogue with rating agencies and international investors.

From a policy perspective, several key circulars have been issued, including Circular 68, which facilitates non-pre-funding transactions, a critical step toward establishing a Central Counterparty Clearing (CCP) mechanism. Additional updates include Circular 18 that amends custody and clearing rules, and Circular 96 on disclosure, all synchronised with the new KRX trading system, an information technology system for managing and operating trading activities on the Vietnamese stock market. The system was signed and implemented by the Ho Chi Minh City Stock Exchange (HOSE) in collaboration with the Korea Exchange (KRX) in 2012. It has been running smoothly since May 5, 2025.

The State Bank of Vietnam has also issued Circular 03, simplifying administrative procedures for foreign investors, especially during account opening. Meanwhile, the Ministry of Finance and SSC are urgently amending Decree 155 issued in 2020 to institutionalise new features of the Securities Law, particularly expanding the CCP model beyond derivatives to cover the spot market as well.

Another key revision in Decree 155 addresses foreign ownership limits in listed companies, a matter of great interest to international institutional investors.

Thu stressed that these updates aim to demonstrate Vietnam’s openness, transparency, and fair treatment of foreign investors, in line with the Government’s strategic orientation.

Technically, the SSC is working on implementing omnibus trading accounts to support foreign funds in clearing and settlement, another essential criterion for emerging market classification.

In parallel with legal and technical upgrades, Vietnam is strengthening communication with international investors through investment promotion trips. Deputy Finance Minister Nguyen Duc Chi has personally joined several key missions to affirm the Government’s high-level commitment. SSC is also closely cooperating with the World Bank and rating agencies to share updates and progress.

“We place great importance on the real-life experiences of foreign investors in Vietnam. Alongside this opportunity, maintaining the upgraded status will be even more challenging that requires sustained and meaningful reforms,” said Thu.

He added that, based on recent discussions with rating agencies, SSC is confident Vietnam will gain consensus for an upgrade during the September 2025 review cycle.

Nasdaq pledges to share stock market experience with Vietnam

VOV.VN - The Vice Chairman and the Global Head of Capital Markets at Nasdaq, Bob McCooey, voiced the firm’s commitment to sharing stock market experience with Vietnam, during his meeting with Ambassador Dang Hoang Giang, head of the Permanent Mission of Vietnam to the United Nations, at the Nasdaq headquarters in New York on May 5.