Vietnam’s financial market is witnessing a historic turning point. FTSE Russell, a prestigious global rating agency, has officially upgraded Vietnam’s stock market to the emerging market group, which has received widespread attention.
The event was marked by the image of congratulatory lights from the world's leading exchanges such as Nasdaq (USA) and London (UK). Mr. Bob McCooey, Vice President of Nasdaq, shared that he felt honored to be present in Vietnam at this important moment, which shows the international stature of the event.
Immediately after the decision to upgrade, Prime Minister Pham Minh Chinh issued Official Dispatch 192, directing the Ministry of Finance and relevant agencies to carry out a series of urgent tasks.
The focus is on accelerating reform, optimizing procedures for foreign investors, perfecting the legal framework and modernizing infrastructure. The government also requires strengthening supervision and strictly handling market manipulation, developing the market towards transparency, efficiency and deep integration.
To proactively seize opportunities, the State Securities Commission has introduced important amendments to the Securities Law and guiding documents. One of the notable breakthroughs is the integration of the initial public offering (IPO) process with the listing procedure.
This change significantly shortens the time it takes to list a company on the stock exchange, from several months to just 30 days. According to Mr. Hoang Van Thu, Vice Chairman of the State Securities Commission, this reform not only supports businesses but is also a key factor in increasing their attractiveness in the eyes of international investors.
Along with institutional reform, diversifying investment products is identified as the key to attracting and retaining foreign capital flows. In the context of limited foreign investor participation in the derivatives market, the launch of VN100 index futures is expected to create a new investment channel.
The VN100 index is highly representative, covering more than 89% of market capitalization and is less affected by local fluctuations of blue-chip stocks. Experts believe that this product will provide a more effective risk hedging tool, while contributing to increasing depth and liquidity for the entire market.
Short-term success has not made managers and experts lose sight of the long-term. International opinions, from representatives of the World Bank to experts from ING, agree that maintaining and promoting the new position is much more difficult.
Lessons from Middle Eastern markets such as Qatar and the UAE show that they all had to carry out extensive reforms after being upgraded, from loosening foreign ownership caps, modernizing trading infrastructure to improving corporate governance and information disclosure standards.
Vietnam’s next strategic goal is to be recognized by MSCI, the world’s largest index provider. To achieve this, the journey of governance reform, transparency and market liberalization must be steadfastly maintained.
As Finance Minister Nguyen Van Thang has emphasized, upgrading is not the final destination, but an important stepping stone. The journey ahead requires a comprehensive effort to turn the stock market into a truly key medium- and long-term capital channel for the economy, contributing to the country's sustainable development in the new era.
Source: https://baovanhoa.vn/kinh-te/buoc-ngoat-lich-su-va-hanh-trinh-cai-cach-moi-176286.html
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