Vietnam seeks to attract more US capital to stock market

Vietnam’s stock market is seeking to expand its visibility among international financial institutions in the upgrading of its market classification.

On August 27 (local time), Phuong met with executives of S&P Dow Jones Indices, one of the world’s leading index providers.

S&P Dow Jones Indices was represented by Greg Vadala, managing director and head of sales for the Americas; John Welling, head of global equity and thematic indices; and other experts.

The discussions focused on Vietnam’s stock market reforms, international investors’ access to the market, and the criteria S&P Dow Jones Indices considers when classifying and assessing markets.

Phuong said Vietnam had introduced a range of reforms to make it easier for investors, particularly foreign investors, to participate in the market.

Key changes include expanding the disclosure of information in English, developing the institutional investor base and diversifying financial products. 

The SSC is also working with relevant agencies to introduce a central counterparty clearing mechanism in line with the market’s development roadmap.

A key topic was S&P Dow Jones Indices’ methodology and process for market classification.

The two sides discussed factors affecting access to international capital, including foreign ownership limits, settlement, clearing and custody, information transparency, investor protection and the actual participation of international financial institutions.

According to S&P Dow Jones Indices, market size and liquidity are not the only measures used to assess a market. Accessibility, operational efficiency in practice and feedback from international institutional investors are also important considerations.

S&P Dow Jones Indices asked the SSC to continue providing official information and data, as well as updates on the progress of reforms to support its monitoring, analysis and assessment of Vietnam’s stock market.

Nasdaq seeks stronger Vietnam-US capital market links

A day before the S&P Dow Jones Indices meeting, Phuong also met with Nasdaq vice-chairman Robert H. McCooey Jr., known as Bob McCooey.

The discussion on international capital flows came as Vietnam is set to be upgraded by FTSE Russell from frontier market status to secondary emerging market status.

Phuong said the upgrade would create new opportunities to attract capital and increase participation by international investors. Vietnam expects the milestone to encourage more U.S. investors to take an interest in and participate in the stock market.

“Vietnam will continue to improve the quality of its market, diversify products, enhance regulatory and supervisory effectiveness, and facilitate greater participation by domestic and international investors,” Phuong said.

McCooey described Vietnam as a dynamic market with significant potential to attract interest from U.S. and global investors.

Nasdaq also said it was ready to continue working with the SSC and Vietnam’s stock market during its next stage of development.

The two sides discussed ways to strengthen links between the Vietnamese and U.S. capital markets, particularly by connecting Vietnamese businesses with financial institutions, investment banks and the international investor community.

Nasdaq said it was ready to leverage its network and experience to help connect businesses, introduce investment opportunities and help Vietnamese companies explore suitable ways to raise capital in international markets.

The SSC and Nasdaq also exchanged experience in developing financial products, new market segments and market supervision.

Phuong asked Nasdaq to increase its sharing of expertise, and expand training and professional exchanges to strengthen the capacity of Vietnam’s market supervision personnel.

Nasdaq said it was ready to coordinate on suitable programs.

The two sides agreed to further develop their cooperation, focusing on connecting the Vietnamese and U.S. capital markets, helping Vietnamese businesses access international investors, sharing experience in product development and strengthening market supervision capabilities.