According to the Ministry of Finance, all necessary measures to meet the upgrade requirements have been completed. Authorities are now awaiting an objective assessment from international organisations.

Deputy Minister of Finance Nguyen Duc Chi stated that Vietnam has been implementing a series of coordinated measures to develop a sustainable, stable, and transparent stock market in line with the national capital market development strategy. He emphasised that the legal framework for the stock market has been gradually improved, while governance and regulatory supervision have been tightened, through increased cooperation with international institutions to ensure fair evaluation.

“The State Securities Commission has proactively provided information and documentation to international agencies for a transparent and objective review. We will continue close cooperation to ensure a fair and transparent evaluation,” said Chi.

He also noted that the market upgrade is just the beginning, and maintaining that status will require continued long-term effort.

“The upgrade is not a one-time goal, but a continuous process aimed at developing a stable, transparent stock market that effectively supports the economy, businesses, and long-term capital mobilisation,” he emphasised.

In the most recent assessment in March, Vietnam had met 7 out of 9 mandatory criteria for the upgrade. Authorities now confirm that all remaining criteria have been addressed.

Specifically, Circular 68 by the Ministry of Finance allows foreign institutional investors to purchase shares without having to pre-fund the order, a key improvement in market accessibility.

Decree 245 issued by the government eliminates a regulation that allows public company charters or general shareholder meetings to limit foreign ownership below the statutory ceiling, removing a significant barrier for foreign capital.

In addition, Circular 25 from the State Bank of Vietnam eases procedures for non-resident foreign investors to open and use payment accounts for indirect investment activities in Vietnam.

These legal changes, which took effect immediately upon issuance, reflect the government’s strong commitment to addressing bottlenecks and creating a more open legal environment for the stock market.

A report recently made by Vietcap Securities shows FTSE Russell is likely to issue a positive decision in this review. If Vietnam is upgraded, around 30 local stocks could be included in benchmark indices tracked by global passive funds. This could result in at least US$$1 billion in passive capital inflows during the rebalancing process.

However, maintaining the upgraded status is just as critical. FTSE Russell reviews its criteria quarterly, including minimum foreign ownership levels, liquidity, market capitalisation, and free float. Violations of any of these may result in a stock being removed from the index.

Global asset managers back upgrading Vietnam’s stock market

VOV.VN - Vietnam is approaching a milestone as numerous global asset managers express support for FTSE Russell’s proposal to upgrade the Vietnamese stock market from the Frontier Market group to the Secondary Emerging Market group, opening opportunities to attract international capital.