Vietnam stock market set for status upgrade in September

Vietnam's stock market is expected to be upgraded to emerging market status during the September review following the implementation of measures to meet international rating agency requirements.

Hoang Van Thu, Vice Chairman of the State Securities Commission (SSC), revealed the timeline during a regular press conference held by the Ministry of Finance on July 2.

"The commission has been making continuous efforts to achieve an upgrade in the upcoming FTSE review in September," said Thu, noting that upgrading from frontier market status is one of the Vietnamese government's key strategic goals.

FTSE Russell is one of the world’s top three index providers, alongside MSCI and S&P Dow Jones Indices, and serves as a benchmark for global investors.

According to the SSC official, rating agencies such as FTSE and MSCI, along with international investors, have expressed strong confidence in Vietnam’s progress toward a market upgrade.

In recent months, regulators have facilitated foreign investor participation and improved legal and technical frameworks to provide updates on the current market landscape and its development.

On the regulatory front, the Ministry of Finance issued Circular 68 governing non-margin trading activities and laying the foundation for a central counterparty (CCP) mechanism, while Circular 18 aligns Circulars 119 and 96 with Vietnam's market upgrade objectives.

Since its official launch in early May, the KRX-developed trading system has operated smoothly and safely without any technical issues.

According to Thu, the SSC has worked with the State Bank of Vietnam to issue Circular 03, which simplifies administrative procedures for foreign investors, especially the process of opening trading accounts.

Moreover, the authorities are revising Decree 155 to include provisions consistent with Securities Law No. 56. A key highlight is the affirmation that the central clearing model will apply to both the derivatives and main stock markets.

The proposed revisions to Decree 155 are expected to clarify foreign ownership limits in listed entities.

"These amendments aim to enhance Vietnam’s openness, transparency, and fairness for foreign investors in line with the government’s strategic direction," said Thu.

The SSC has introduced omnibus accounts for clearing and enhanced engagement with international investors through promotion missions and collaboration with the World Bank and rating agencies to share Vietnam’s reform updates.

The market upgrade is expected to boost Vietnam’s capital market by increasing global investor access, raising capitalization and liquidity, and potentially attracting up to $25 billion in foreign investment by 2030, according to the World Bank.

Deputy Finance Minister Nguyen Duc Chi stressed that upgrading Vietnam’s stock market is a technical milestone and a strategic move toward developing a modern, transparent financial system that aligns the interests of the government, investors, and businesses. He added that an upgrade would also benefit global investors by adding a high-quality market to their portfolios.

“In our discussions with international investors, we always emphasize that the market upgrade process is intended to provide balanced benefits to all parties involved,” he said.

Chi reaffirmed that Vietnam aims to develop its capital market rapidly and sustainably in line with the Government's approved strategic direction.

Sharing this view, Thu from the SSC added that while achieving an upgrade is important, maintaining that status will be even more challenging. Therefore, all reforms are designed with long-term sustainability and the genuine expectations of investors in mind.

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