Prime Minister Pham Minh Chinh has just signed and issued Directive No. 06 dated February 15 on urging the implementation of key tasks after the 2024 Lunar New Year holiday. This includes quickly handling difficulties to meet the criteria for upgrading Vietnam's stock market from frontier to emerging market, reporting implementation results before June 30.
Prime Minister directs to handle difficulties to upgrade stock market
Specifically, the Prime Minister requested relevant ministries, agencies, localities, collectives and individuals, according to their assigned functions, tasks and powers, to immediately focus on handling work after the Giap Thin Lunar New Year holiday, not to delay affecting production, business and socio -economic activities, especially for work that has been backlogged due to the holiday; continue to urgently, seriously, synchronously and effectively implement the tasks and solutions assigned by the Government and the Prime Minister.
In particular, the Prime Minister assigned the Ministry of Finance to preside over and coordinate with the State Bank and the Ministry of Planning and Investment to promptly handle problems in their assigned areas to meet the criteria for upgrading the stock market from a frontier market to an emerging market.
In a recently published report, foreign investment fund Lumen Vietnam Fund assessed that Vietnam is in the final stages of the process of upgrading to an emerging market. New pre-financing regulations may be proposed in mid-2024 to meet the last two requirements of FTSE. The fund forecasts that FTSE's upgrade of Vietnam's stock market will take place as early as September 2024 or March 2025. This could attract significant foreign capital and improve market liquidity.
According to Ms. Nguyen Hoai Thu, CEO of VinaCapital Securities Investment Fund, if the Vietnamese stock market is upgraded, it is estimated that the proportion of Vietnamese stocks will account for about 0.7 - 1.2% in the emerging market index basket of MSCI and FTSE Russell. At that time, the additional foreign capital flowing into the Vietnamese stock market could reach 5 - 8 billion USD.
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