Vietnam's finance ministry outlines next steps after FTSE Russell market upgrade

Speaking at a government press conference on Saturday, Chi said the upgrade demonstrated the attractiveness of Vietnam's stock market while creating a need for long-term development to meet the economy's capital-raising needs.

The ministry's immediate priority is to continue improving the legal framework, Chi said.

The government has submitted amendments to the Securities Law to the National Assembly for consideration during its current session, with the changes aimed at meeting market development requirements and supporting the application of artificial intelligence and new technologies, including through controlled trials.

The ministry is also considering measures to reduce regulatory requirements and administrative procedures to make it easier for market participants to operate, Chi said.

Another focus is to expand the supply of capital and diversify products available on the stock market.

The ministry is working on regulations related to initial public offerings to facilitate listings and encourage large, well-governed companies and foreign-invested enterprises to list on the Vietnamese stock market.

It also plans to consider amendments to the Investment Law to clarify and facilitate foreign investors' participation in the stock market, including by determining foreign ownership ratios for listed companies, Chi said.

Other measures include developing public and private bond issuances and diversifying securities and derivatives products, including green bonds.

Chi said expanding market supply would also help generate investment demand.

The ministry therefore plans to develop the institutional investor base and increase the proportion of institutional investors to support the market's long-term stability.

Rules governing market access and foreign investors will continue to be reviewed, with procedures streamlined to facilitate participation, he said.

The ministry also has a program to provide training and financial-market knowledge to domestic investors, with a focus on helping individual investors improve their understanding and skills.

It will remain committed to the objectives of the stock market development strategy approved by the Prime Minister, Chi said, with the market expected to serve as an important medium- and long-term capital mobilization channel for the economy.

FTSE Russell formally upgraded Vietnam's stock market from frontier to secondary emerging-market status, effective September 21, following years of reforms to improve market accessibility and infrastructure.

The upgrade marks Vietnam's inclusion in the FTSE Russell Global Equity Index Series and is expected to deepen the country's integration with global financial markets.

Ahead of the upgrade, leaders of the London Stock Exchange, Nasdaq, Singapore Exchange, and Morgan Stanley had congratulated Vietnam and highlighted the progress of its capital market.