The operation of KRX is a turning point in the journey to bring the Vietnamese stock market from frontier to emerging. According to Deputy Minister of Finance Tran Quoc Phuong speaking at the Government Press Conference in April 2025, the KRX system is a breakthrough in bringing the Vietnamese stock market closer to international standards, meeting the strict requirements of international rating organizations.
One of the key factors to upgrade the market is to improve market liquidity. KRX allows for shorter settlement cycles and supports efficient odd-lot trading.
“The operation of KRX opens up the potential for developing new investment products such as T+0 trading, controlled short selling, and flexible ETFs,” said Mr. Tran Minh Hoang, Director of Research and Analysis, VCBS Securities Company.
Mr. Hoang also emphasized that this system will change investment behavior, increase liquidity and bring the market closer to international standards.
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| One of the important factors to upgrade the market is to improve market liquidity. |
Another highlight of KRX is solving the problem of covering stock buy/sell orders in trading sessions at the opening/closing price matching price (ATO/ATC).
“KRX helps investors clearly understand the expected matching price and the remaining buy/sell volume, thereby placing more accurate orders,” said Mr. Lee Jun Hyuck, General Director of Pinetree Securities Company.
However, Mr. Lee noted that new services such as T+0 or short selling will be implemented according to the roadmap. “With careful preparation from the management agency and securities companies, investors will quickly get acquainted and optimize the advantages of KRX,” he added. This will help investors, especially foreign investors, access the market more easily.
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KRX opens up the potential for developing new investment products. |
KRX plays a central role in meeting the upgrading criteria of FTSE Russell and MSCI - the world's two leading stock market rating organizations. Speaking at the Government Press Conference in April 2025, Deputy Minister of Finance Tran Quoc Phuong said: "We have achieved 9 criteria for upgrading the Vietnamese stock market of rating organizations".
To meet the requirements on market accessibility, the Ministry of Finance issued Circular No. 18/2025/TT-BTC dated April 26, 2025, removing the regulation that foreign investors must have 100% of the money before trading. This regulation meets the proposal of FTSE and major investors, creating favorable conditions for international capital flows.
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Investors have many investment options with advanced derivative securities products. |
Synchronous solutions from the State Securities Commission and relevant agencies are also key factors. The Ministry of Finance is reviewing and amending Decree 155/2020/ND-CP dated December 31, 2020 to make the foreign ownership ratio in public companies transparent.
The State Securities Commission coordinated with the State Bank to amend Circular 05/2014/TT-NHNN to simplify procedures for opening indirect investment accounts.
In addition, the central counterparty (CCP) mechanism is being promoted to reduce transaction risks, and a master trading account is being studied, initially serving foreign investment funds.
To attract long-term capital, it is necessary to build transparent industry and ESG (environmental, social, and governance) indexes. “In order for industry and ESG indexes to attract long-term capital, it is necessary to build a transparent methodology based on quality data and international standards,” emphasized Mr. Tran Minh Hoang, Director of Research and Analysis, VCBS Securities Company. KRX also supports the implementation of advanced derivative products such as index options, helping the market become more diverse and rich.
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World Bank commits to support in upgrading Vietnam's stock market. |
International support also plays an important role in the upgrading process. At a meeting with the World Bank on May 7, 2025, Vice Chairman of the State Securities Commission Ha Duy Tung shared the progress of implementing KRX and completing the legal framework.
“Vietnam’s stock market is on the right track and these efforts need to be sustained to ensure a successful upgrade,” said Francesco Strobbe, Director of the Finance, Competitiveness and Innovation Practices for the East Asia and Pacific region at the World Bank. The World Bank has committed to providing technical assistance, and a policy dialogue group with international experts has been established to promote coordinated solutions.
KRX is an important first step, but upgrading the Vietnamese stock market requires comprehensive efforts. “The confidence of foreign investors will be the decisive factor,” Deputy Minister of Finance Tran Quoc Phuong emphasized. KRX is not only an advanced technology platform but also a premise for efforts to bring the Vietnamese stock market to international standards, creating a foundation for sustainable development.
Source: https://nhandan.vn/chung-khoan-viet-nam-huong-toi-muc-tieu-nang-hang-thi-truong-post878915.html
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