Vietnam's stock market will be upgraded by 2025

Speaking to the press at the Government press conference on the afternoon of February 1, Deputy Minister of Finance Nguyen Duc Chi said that the Vietnamese stock market is in dire need of a new development step; specifically, being upgraded from a frontier market to an emerging market, according to the criteria of international rating organizations.

Sẽ nâng hạng thị trường chứng khoán Việt Nam vào năm 2025- Ảnh 1. — Deputy Minister of Finance Nguyen Duc Chi

"The Government's Resolution and the Prime Minister 's decision on stock market development have also directed and strived with relevant ministries and branches to achieve the goal as soon as possible by 2025," said Mr. Chi.

Specifically, the leader of the Ministry of Finance said that in 2024, it will handle the pre-transaction margin requirements of investors, especially foreign investors.

"Currently, the regulation requires a 100% deposit, but foreign organizations consider this a barrier and must be adjusted soon to upgrade the market," said the Deputy Minister of Finance, adding that the ministry will submit to competent authorities a good and feasible plan in 2024.

The second requirement of rating agencies is to be transparent about the ownership ratio of foreign investors in listed companies. The Ministry of Finance will coordinate with the Ministry of Planning and Investment to publish the clearest information in bilingual form on the media.

The third is to list information of listed enterprises in both Vietnamese and English. The goal is to implement it in the first half of 2024, ensuring that by the end of 2024, enterprises must basically publish bilingual information.

Fourth is to put the new securities trading system into operation, ensuring the requirements for transactions, payments, and custody... According to Mr. Chi, to be considered for upgrading depends on many legal regulations, reflected in the reality of the market.

"Although the goal is very important, with any solution, the Ministry of Finance must ensure that the market can manage systemic risks and ensure safe and sustainable operations," Deputy Minister Nguyen Duc Chi emphasized.

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