Developing a transparent, efficient, and deeply integrated stock market

Developing a transparent, efficient, and deeply integrated stock market

On the occasion of the Vietnamese stock market being recognized by FTSE Russell as having met all the criteria for secondary emerging market classification, Prime Minister Pham Minh Chinh issued a telegram on upgrading the Vietnamese stock market. The Prime Minister commended the high determination and great efforts of the Ministry of Finance and the State Securities Commission, the close and effective coordination of the State Bank of Vietnam and relevant ministries and branches; the participation of the Stock Exchanges, the Vietnam Securities Depository and Clearing Corporation, market members, news agencies and the press.

In the coming time, in order for the Vietnamese stock market to continue to develop strongly, transparently, effectively, modernly, sustainably, towards the goal of upgrading to high standards, the Prime Minister requested:

The Ministry of Finance shall preside over and coordinate with relevant agencies to promptly and effectively implement the Project to upgrade the Vietnamese stock market. Direct the State Securities Commission to continue to closely coordinate with the international rating organization FTSE Russell to ensure the official transition process according to the roadmap. Preside over and coordinate with the State Bank, relevant ministries and branches to continue to synchronously deploy solutions to create maximum convenience for domestic and foreign investors; proactively continue to perfect the legal framework, reform administrative procedures, modernize and digitize market infrastructure, strengthen supervision, ensure security, safety and market stability. Strictly prohibit, inspect and strictly handle negative phenomena in purchasing goods to push up prices, inflate prices, distort the market and gain personal benefits.

In addition, the State Bank of Vietnam proactively coordinates closely with the Ministry of Finance, the State Securities Commission and relevant agencies to quickly complete the legal framework and technical infrastructure to deploy the central counterparty (CCP) mechanism for the underlying stock market in early 2027. Research and deploy foreign exchange risk hedging products for foreign investors. Shorten the time to open indirect investment accounts and payment accounts for foreign investors.

International media has also continuously reported and positively evaluated Vietnam's market upgrade.

International assessment of upgrading Vietnam's stock market

Immediately, international media also continuously reported and positively evaluated Vietnam's market upgrade.

According to the UK’s Financial Times, the market upgrade comes at a crucial time for Vietnam, which is becoming a key link in the global supply chain. The newspaper quoted international experts as saying that the upgrade would be a positive structural move to help Vietnam’s capital market move towards greater openness, improve liquidity and attract deeper institutional participation.

According to Bloomberg, this change is expected to boost Vietnam’s position in the eyes of global investors and open the door to large and stable foreign capital flows in the long term. This is also the basis for Vietnam to aim to achieve MSCI emerging market status by 2030.

Source: https://vtv.vn/phat-trien-thi-truong-chung-khoan-minh-bach-hieu-qua-hoi-nhap-sau-rong-100251009095522545.htm