Workshop "Creating motivation to upgrade the stock market"

The workshop "Creating motivation to upgrade the stock market" was attended by leaders of the Ministry of Finance, the State Securities Commission, representatives of the Stock Exchanges, the Vietnam Securities Depository and Clearing Corporation, securities companies, commercial banks, listed enterprises, experts in the fields of finance, securities...

Vietnam's stock market is currently classified as a frontier market by two international organizations, MSCI and FTSE Russell. FTSE Russell alone has put Vietnam on the waiting list for an upgrade to an emerging market. As for MSCI, the positive thing is that in its latest announcement, this organization assessed that Vietnam has improved in its transferability. Thus, Vietnam has met 7/9 criteria of an emerging market according to FTSE's criteria, while MSCI needs 8 criteria to improve.

An effective stock market is always considered one of the key criteria to assess the level of development of a market economy of a country or territory. Therefore, a successful upgrade will be an important signal, helping to enhance the position of the Vietnamese economy in the international community. The perspective of international investors on the investment and business environment in Vietnam will thus change more positively. At the same time, this will be an indirect boost for the goal of gradually raising the national credit rating according to the "Project to improve national credit rating by 2030" according to Decision No. 412/QD-TTg dated March 31, 2022 of the Prime Minister.

Mr. Tran Minh Hoang - Director of Research and Analysis of Vietnam Joint Stock Commercial Bank for Foreign Trade Securities Company (VCBS) - said that the most difficult criteria related to the scale of transactions in Vietnam can be met, but the criteria related to the legal corridor, mechanism and information transparency are stuck. These criteria are completely within the reach of managers as well as the roadmap for changing Vietnam's legal corridor.

“We acknowledge the great efforts of the management agency in building a legal corridor. Especially the two important criteria related to foreign investors’ deposits (prefunding) and information transparency among investors. We expect investors to only need a small amount of money instead of 100% to be able to trade in the market. When these conditions are met, there is a complete basis for Vietnam to achieve the goal of upgrading the stock market in 2025,” said Mr. Hoang.

The workshop “Creating motivation to upgrade the stock market” will be held at 2:00 p.m. on July 2, 2024 at the 6th floor conference hall, Lao Dong Newspaper, No. 6 Pham Van Bach, Yen Hoa, Cau Giay, Hanoi. The program will be broadcast live on Lao Dong Electronic Newspaper (www.laodong.vn) and Lao Dong Newspaper's Fanpage.