Vietnam's securities market has not been upgraded yet, we will have to wait until 2025

Vietnam's stock market continues to miss out on upgrade opportunities - Photo: QUANG DINH

FTSE Russell, a stock market rating organization, has just released its October 2024 stock market rating report, in which Vietnam continues to be on the list for consideration for an upgrade to secondary emerging market status.

The report indicates that Vietnam was placed on the waiting list for reclassification in September 2018, with the possibility of being reclassified as an emerging market.

According to the rating agency, the commitment to upgrading to emerging market status has remained steadfast since the annual assessment was released in September 2023 and was recently reaffirmed by the Prime Minister himself.

The head of government has specifically committed that the Vietnamese market will remove barriers that could hinder its ability to meet the criteria for upgrading (to emerging market status) by 2025.

The measures include amending relevant legal regulations and facilitating or removing barriers to foreign investors' access to the market.

For example, the government is currently reviewing foreign ownership limits in various sectors and simplifying the process of opening accounts for foreign investors.

If Vietnam wants to achieve its goal of being upgraded by 2025, it is crucial that the pace of change and reform is maintained.

The revised regulations need to be agreed upon and widely publicized as soon as possible, including clearly defining the necessary roles and responsibilities within the payment model, as well as an implementation roadmap with specific timelines, FTSE Russell noted.

FTSE also stated that an update on Vietnam's pending status will be released during the mid-term review in March 2025.

Previously, the Ministry of Finance issued a circular amending four circulars related to foreign institutional investors being able to trade shares without requiring sufficient funds and a roadmap for disclosing information in English.

The circular will take effect from November 2nd. Currently, VSDC, securities companies, custodian banks, and investors are working to complete the paperwork.

Owned by the London Stock Exchange, FTSE Russell is one of the world's three leading index providers, along with MSCI, FTSE Russell, and S&P Dow Jones Indices.

Similar to MSCI, FTSE's market classification serves as a benchmark for assessing a country's standing, market, and business in the eyes of international investors and has a significant influence on global benchmark indices.

Source: https://tuoitre.vn/chung-khoan-viet-nam-chua-duoc-nang-hang-tiep-tiep-cho-toi-nam-2025-20241009084155338.htm