What will the Ministry of Finance do to upgrade the stock market?

According to the Ministry of Finance , in order to upgrade the stock market, the Ministry has actively worked with market rating organizations such as FTSE Russell and MSCI to learn about their market classification criteria and exchange information on efforts from Vietnamese management agencies.

At the same time, the Ministry of Finance is continuing to complete major projects on stock market development strategies, restructuring the stock market, and establishing a capital trading floor for innovative startups.

In addition, the Ministry continues to strengthen the management, supervision, inspection and examination of public companies and securities trading organizations to ensure the healthy development of the market; has issued 102 penalty decisions, with a total fine of VND 19 billion.

Previously, at the Conference on deploying the task of developing the stock market in 2024, Deputy Governor of the State Bank of Vietnam Pham Thanh Ha said that the Vietnamese stock market is currently classified by two market rating organizations, MSCI and FTSE Russell, as a Group 3 - frontier market.

Mr. Ha added that FTSE Russell is currently putting Vietnam on the waiting list for upgrading to Group 2 - emerging market.

Finance - Banking - What will the Ministry of Finance do to upgrade the stock market?

Regarding the goal of upgrading the market by 2025, at the Stock Market Seminar "Building the foundation - Accumulating - Accelerating", Ms. Pham Thi Thuy Linh - Deputy Director of the Market Development Department of the State Securities Commission (SSC) said that Vietnam's criteria currently meet 7/9 criteria.

There are two criteria that need to be completed: foreign investor pre-transaction deposit and foreign investor ownership ratio.

The State Securities Commission has discussed with international rating agencies the solution to the deposit issue. The State Securities Commission has submitted to the Ministry of Finance a proposal to amend and supplement a number of documents, initially not requiring 100% deposit in cash for foreign institutional investors, ensuring foreign operations and payment operations.

Regarding the foreign ownership ratio, the State Securities Commission, together with the Ministry of Finance and the Ministry of Planning and Investment (MPI), reviewed the industries and at the same time published transparent information in English so that investors could easily grasp the ownership ratio of enterprises. At the same time, it is recommended that the MPI coordinate with other ministries and sectors to review the industries and possibly expand the foreign investor ownership ratio in some non-essential industries.

In addition, the Ministry of Finance will report to amend the regulations on information disclosure in English applicable to public companies and large-scale listed companies, expected to apply to English disclosures for periodic information disclosure and large-scale listed organizations from January 1, 2025, for extraordinary information from January 1, 2026, applicable to all public companies in information disclosure activities from January 1, 2028 .

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