Vietnam's stock market has not been upgraded yet, we will have to wait until 2025

Vietnam's stock market continues to miss the upgrade deadline - Photo: QUANG DINH

FTSE Russell - a stock market rating organization - has just released its stock market rating report for October 2024, in which Vietnam continues to be on the list for consideration to upgrade to secondary emerging market status.

The report shows that Vietnam was put on the waiting list for classification in September 2018 with the possibility of being reclassified to emerging market status.

According to the rating agency, the determination to upgrade to emerging market status has been consistently maintained since the annual review in September 2023 and was recently reaffirmed by the Prime Minister himself.

The Head of Government has specifically committed that the Vietnamese market will remove barriers that could hinder meeting the criteria for upgrading (to emerging market status) by 2025.

The measures include amending relevant legal regulations and facilitating and removing barriers for foreign investors to access the market.

For example, the Government is currently reviewing foreign ownership ratios in various industries and simplifying account opening procedures for foreign investors.

If Vietnam wants to achieve its goal of being upgraded by 2025 as set out, it is important that the pace of change and reform is maintained.

The revised regulations need to be agreed and widely communicated soon, including a clear definition of the roles and responsibilities required in the payment model, as well as an implementation roadmap with specific timelines, FTSE Russell noted.

FTSE also said an update on the status of Vietnam's waiting list will be given at the mid-term review in March 2025.

Previously, the Ministry of Finance issued a circular amending four circulars related to foreign institutional investors being able to trade and buy shares without requiring sufficient funds and a roadmap for information disclosure in English.

The above circular will take effect from November 2. Currently, VSDC, securities companies, custodian banks and investors are working to complete the paperwork process.

Owned by the London Stock Exchange, FTSE Russell is one of the world's top three index providers, along with MSCI, FTSERussell and S&P Dow Jones Indices.

Similar to MSCI, FTSE's market classification is a reference for assessing the position of a country, market and business in the eyes of international investors and has a great influence on global benchmark indices.

Source: https://tuoitre.vn/chung-khoan-viet-nam-chua-duoc-nang-hang-tiep-tuc-cho-toi-nam-2025-20241009084155338.htm