Bringing foreign capital into Vietnam's stock market

According to the Head of the Securities Market Development Board, developing new products combined with restructuring investors, expanding funds and index sets will help attract long-term capital flows.

After being upgraded by FTSE Russell, Vietnam’s stock market is welcoming a wave of comprehensive reforms. From opening up to foreign investors, developing new financial products to perfecting the central clearing model (CCP). These moves demonstrate the determination to deeply integrate and raise Vietnam’s position on the global financial map.

The State Securities Commission is currently preparing to issue regulations allowing foreign investors to place orders directly through global securities companies, while completing the trading mechanism before the March 2026 review period of FTSE Russell.

The agency also drafted a Decree on listing innovative startups, with flexible profit criteria and listing conditions, opening up new capital mobilization opportunities.

At the same time, the State Securities Commission will promote IPOs (initial public offerings) associated with listings, allowing foreign-invested enterprises to participate in listings, and develop derivative products such as index options, gold derivatives, gold ETFs, carbon markets, and crypto assets in the coming time. The Commission also recommends promoting equitization, divestment of state capital, increasing the source of quality goods, and maintaining a reasonable controlling ratio.

According to Ms. Pham Thi Thuy Linh, Head of the Securities Market Development Board, developing new products combined with restructuring investors, expanding funds and index sets will help attract long-term capital flows.

Mr. Nguyen Son, Chairman of the Board of Members of the Vietnam Securities Depository and Clearing Corporation (VSDC), said: For capital to really flow in, we must handle the "channels" that lead capital.

The first phase of the Central Clearing Center (CCP) is expected to operate in the first quarter of 2027, in parallel with the establishment of a CCP company in accordance with legal regulations to shape a model suitable for the Vietnamese market. This is a key condition to meet the criteria for upgrading according to MSCI, towards the period 2028-2030.

New products such as midday trading and pending securities sales are also being considered for implementation, depending on the stability of the KRX system.

Mr. Tran Thang Long, Director of Analysis of BIDV Securities Company (BSC), proposed to encourage more quality, multi-industry enterprises to list new listings to attract long-term capital flows.

Mr. Long said that after being upgraded, investment funds specializing in frontier markets will restructure their portfolios and forecast that in the next 1.5-2 years, the net buying trend of foreign investors will return when interest rates decrease.

According to Mr. Pham Hong Son, Deputy Director of the Analysis Center of Saigon- Hanoi Securities Company (SHS), the two main driving forces for promoting IPOs and listings are support policies and the initiative of enterprises. Decree 245/2025/ND-CP has shortened the IPO-listing period from 90 to 30 days, simplified procedures, expanded the foreign ownership ratio and increased information transparency, helping enterprises shorten the "journey to the stock exchange."

Along with the equitization process and encouragement of the private sector, the Vietnamese stock market is expected to expand in scale, improve the quality of goods sources and create strong attraction for foreign capital flows.

According to Mr. Nguyen Sang Loc, Portfolio Management Director of Dragon Capital, the upgrade is the result of a consistent reform process, perfecting the legal framework, implementing CCP and consolidated accounts, helping international capital flows to circulate safely and effectively.

From 2026, when economic, political and corporate profit factors converge, foreign capital flows are expected to return strongly. The IPO wave could reach 47-50 billion USD in the next three years, opening a period of deep and sustainable financial integration.

The three driving forces of market upgrading, IPOs and foreign capital flows will create positive interactions, becoming the foundation for a new growth cycle. The VN-Index can aim for the 2,000-point mark in the medium and long term, while the target of 1,800 points by 2026 reflects the real growth expectations of businesses.

However, experts note that IPOs are only suitable for investors with independent thinking, discipline and long-term vision. Investors need to carefully analyze financial reports, evaluate business models and leadership capacity to limit information risks. Overall, the market upgrade is an opportunity to reposition Vietnamese stocks on the regional financial map, but also requires maintaining trust, improving the quality of listed goods and effectively handling capital "streams".

As global capital flows seek safe, transparent and in-depth destinations, Vietnam needs to continue to affirm its reform capacity and develop diverse products such as CCPs, gold ETFs, carbon markets, etc. to attract long-term capital flows and support economic growth.

Handling the “channels” of foreign capital is not only a technical and legal problem, but also a key strategy in international financial integration. When the upgrading process is completed, ensuring the safe and transparent operation of foreign capital flows will determine the success of Vietnam’s securities market in the new growth cycle./.

Source: VNA

Source: https://htv.com.vn/dan-von-ngoai-vao-thi-truong-chung-khoan-viet-nam-222251117081815915.htm