Stock Market Upgrade: The Golden Hour is Coming!

Efforts for the goal of upgrading the stock market

The stock market is considered one of the important parts of the financial market in particular and the Vietnamese economy in general. To contribute to the growth target in 2025 and the following years, the work of upgrading the stock market from frontier to emerging is also of special interest to the Ministry of Finance.

The stock market is one of the very important medium and long-term capital mobilization channels of the economy. Illustrative photo

Assessing the work of upgrading the stock market, Ms. Pham Thi Thuy Linh - Head of the Stock Market Development Department - State Securities Commission - SSC (Ministry of Finance) said: The work of upgrading the stock market under the strong direction of the Government and the Ministry of Finance has been assessed very positively and optimistically by rating organizations and international organizations.

“We also hope that in September this year we will achieve the goal set by the Prime Minister, raising the Vietnamese stock market from frontier to emerging in accordance with the Stock Market Development Strategy to 2030,” Ms. Pham Thi Thuy Linh informed.

To upgrade the Vietnamese stock market, according to the representative of the State Securities Commission, the stock market is identified as one of the very important medium and long-term capital mobilization channels of the economy. Accordingly, to achieve the economic growth target of 8% or more in 2025 and the double-digit growth target in 2026-2030, the State Securities Commission also sets goals and has solutions to maintain transparency, stability and safety in the operation of the stock market.

In addition, regarding the policy to support upgrading the stock market, according to Ms. Pham Thi Thuy Linh, the National Assembly has issued a law amending 9 laws, including the Securities Law, thereby providing very important legal bases for the next stage to develop the stock market faster and more sustainably.

The National Assembly has issued a law amending nine laws, including the Securities Law, thereby providing very important legal bases for the next stage to develop the stock market faster and more sustainably. Illustrative photo

Benefits for investors

Although there are quite favorable conditions, legally meeting the requirements for upgrading, according to the representative of the State Securities Commission: "Upgrading the stock market depends on the assessment of the investment organizations themselves when they see that investing in the Vietnamese stock market has favorable conditions during the transaction process and they will evaluate the Vietnamese stock market at the level of approval for upgrading". Accordingly, the State Securities Commission is creating the most favorable conditions for foreign investors, in order to support the upgrading goal in Vietnam.

Sharing the same view, Mr. Gary Harron - Director of Securities Services, HSBC Vietnam said that the successful upgrading of the stock market will be a remarkable milestone for Vietnam.

To support the goal of upgrading the stock market, Mr. Gary Harron assessed that recently, Vietnam has introduced many policies aimed at meeting the upgrading criteria, while improving the overall market access for foreign investors, including: Removing the pre-transaction margin requirement for stock purchases by foreign institutional investors; simplifying market entry procedures (electronic MSGD and using SWIFT); mandatory information disclosure in English according to the roadmap for issuers and immediately applying to the State Securities Commission, Vietnam Securities Depository and Clearing Corporation (VSDC) and Stock Exchanges (SGDCK); improving regulations on off-exchange and internal transactions (INTERNAL) applying electronic voting; online meetings to support foreign investors in exercising their voting rights at the general meeting of shareholders of public companies.

Notably, the State Securities Commission recently released an English-language announcement on its official website, allowing foreign investors to access information immediately without the need for translation or AI tools. This announcement shows that Vietnam is quickly addressing the issues raised by FTSE Russell (a company specializing in the production, maintenance, licensing and marketing of stock market indices) in February 2025 in order to achieve the goal of upgrading the stock market...

“If the speed of market development still made the international community skeptical in mid-2024, now the progress seems to have become clearer and this is an opportunity for Vietnam to gradually move towards the goal of upgrading in 2025 ” – Mr. Gary Harron affirmed and said: Vietnam's reforms in the stock market are targeting foreign investors and organizations. In fact, the process of developing the stock market will benefit all market participants through positive impacts on the function of the capital market.

In the context that domestic individual investors account for nearly 90% of transactions in the stock market, continuous improvement of market quality can minimize risks for individual investors. In addition, a solid legal framework, enhanced market supervision, improved corporate governance, more modern infrastructure, increased transparency and efficiency, all of which not only help foreign investors feel more confident but also strengthen domestic investors' confidence in the market.

According to the US securities company (MSCI) and the Financial Services Organization (FTSE), the Vietnamese stock market currently ranks first in terms of weight in the Frontier Market group .

Nguyen Hoa

Source: https://congthuong.vn/nang-hang-thi-truong-chung-khoan-gio-vang-sap-diem-380230.html