Upgrade – A milestone for a comprehensive transformation, opening a new stage of quality development

Reporter: Minister, after many years of waiting, FTSE Russell has officially upgraded Vietnam's stock market from frontier market to secondary emerging. As the head of the Finance sector, what do you have to say about this result?

Minister Nguyen Van Thang: Over the past two years, under the attention and strong leadership of General Secretary To Lam, the Government, the Prime Minister, and the close direction of the Ministry of Finance , the State Securities Commission has implemented a comprehensive reform program to bring the Vietnamese stock market closer to the highest international standards and practices.

We are very pleased that FTSE Russell has officially recognized and upgraded the Vietnamese stock market from a frontier market to a secondary emerging market. This positive result is the crystallization of the correct policy and strong determination of the Government, the close coordination of the State Bank and relevant ministries and branches, the companionship of market members, as well as the valuable support from the World Bank, FTSE experts and global investment institutions. On this occasion, on behalf of the leaders of the Ministry of Finance, I would like to commend the tireless efforts of the State Securities Commission, the Stock Exchanges and the Vietnam Securities Depository and Clearing Corporation over the past two years.

It can be said that the upgrading of the Vietnamese stock market is one of the important milestones in the development journey of over 25 years. The official upgrading of FTSE not only creates a great opportunity for Vietnam to attract foreign capital resources, but also clearly demonstrates the right development path and the increasingly deep integration capacity of Vietnam into the international financial system.

PV : Many opinions say that upgrading will open a new door for the quality of development of the Vietnamese stock market. That also means that the stock market must be further improved in terms of scale, quality, transparency and sustainability. What is the Minister's opinion on this?

Minister Nguyen Van Thang: We have determined that upgrading is not a destination but a journey to develop the Vietnamese stock market to grow in quality, transparency and sustainability. In that journey, each stage will be associated with determination and the highest effort to implement effective solutions to achieve the important goals set.

Therefore, the FTSE upgrade this time is the result of a series of directives and implementation work over the past time - a milestone for the comprehensive transformation of the Vietnamese stock market - from the legal framework, technology infrastructure, product and service quality, to business performance and investment behavior of the investing public. The upgrade has marked a big step forward in the quality of development and integration, and also opened a new door for the Vietnamese stock market in the coming time.

For example, in the upgrading issue, the Project to Upgrade the Vietnamese Stock Market, which was recently approved by the Prime Minister, also sets short-term and long-term goals. Accordingly, in addition to the goal of fully meeting the criteria for upgrading from a frontier market to a secondary emerging market of FTSE Russell in 2025, we must also maintain the secondary emerging market rating of FTSE Russell, and meet the criteria for upgrading to an emerging market of MSCI and an advanced emerging market of FTSE Russell from now until 2030.

That means the FTSE's official announcement of the upgrade today is just the initial result, we have many higher goals and need to implement them more seamlessly and decisively.

Therefore, we expect that the capital market in general and the stock market in particular will witness a qualitative change. The market will not only welcome high-quality foreign capital, but also come with higher requirements on corporate governance or publicity and transparency. From there, it will create more motivation for management agencies, market members, businesses and investors to improve themselves, contributing to bringing the stock market to a new level of development, making a stronger contribution to the country's economy.

PV : In the context of the country entering a new era, domestic and foreign capital resources through the stock market play an important role. Could you please tell us what solutions the Ministry of Finance will implement to develop the stock market strongly and sustainably, becoming an important and main medium and long-term capital mobilization channel for the economy in the coming time?

Minister Nguyen Van Thang: The Strategy for Stock Market Development to 2030 clearly states the goals: Developing a stable, safe, healthy, efficient, sustainable, and integrated stock market; enhancing risk tolerance, having a reasonable structure between market components, becoming an important medium- and long-term capital mobilization channel, mainly for the economy; maintaining growth in scale, focusing on improving quality; developing green financial instruments and sustainable finance; promoting digital transformation in the securities sector; building a market management and supervision system associated with the application of modern information technology; strengthening international linkages and integration, gradually narrowing the development gap between the Vietnamese stock market and developed countries.

Therefore, in the coming time, based on the policies and strategies of the Party and the State, we still have a lot of work to do. The Ministry of Finance will direct the State Securities Commission and relevant units to continue to closely follow and resolutely implement the proposed solutions, creating maximum convenience for domestic and foreign investors to access the market; perfecting the legal framework, while promoting the modernization and digitalization of infrastructure, in order to build an increasingly transparent, efficient, modern stock market, according to leading international standards.

During that process, the Ministry of Finance hopes to continue to receive the attention, leadership and direction of the leaders of the Party, the State, the Government, the Prime Minister, the effective coordination of relevant ministries, branches, international organizations and market members... so that the Vietnamese stock market can not only maintain its ranking but also move towards higher standards, especially making the stock market an important medium and long-term capital mobilization channel, mainly for economic development in the new era of development of the country.

PV: Thank you very much, Minister!

LONG AN

Source: https://nhandan.vn/nang-hang-dau-moc-cho-buoc-chuyen-minh-toan-dien-mo-ra-giai-doan-phat-trien-moi-ve-chat-post913753.html