HCMC – Vietnam’s stock market continues to be on the watchlist for an upgrade to secondary emerging market status, as outlined in the latest report from global index provider FTSE Russell, released in October 2024.
Vietnam has been under consideration for reclassification since September 2018, with potential for elevation to emerging market status. However, the recent evaluation indicates that the country still does not meet the criteria for delivery versus payment (DvP) and faces significant limitations in this area.
FTSE Russell emphasized that for Vietnam to secure an upgrade by 2025, it must finalize key regulations that define roles and responsibilities within the payment system and set a clear timeline for their implementation.
Despite the challenges, the report acknowledges the Vietnamese Government’s efforts to reform the stock market, highlighting solutions like the “non-refunding” payment model introduced in Circular 68/2024/TT-BTC and other regulatory updates.
The Government has expressed its commitment to addressing the remaining obstacles to meet FTSE’s requirements for an upgrade by 2025.
In line with this, the Ministry of Finance recently issued Circular 68/2024/TT-BTC, which eliminates the need for foreign institutional investors to have sufficient funds before executing purchase transactions. The circular also revises regulations on securities trading, payments, settlements, and information disclosure.
