Vietnam's stock market is on the cusp of a significant upgrade, but the real challenge lies in sustaining this new status.
A Market Upgrade: The Beginning of a New Journey
FTSE Russell is set to elevate Vietnam's stock market from 'frontier' to 'secondary emerging' status, effective September 21, 2026, subject to a review in March of that year. This upgrade is a testament to the hard work and reforms undertaken by the State Securities Commission of Vietnam (SSC), the stock exchanges, and the Vietnam Securities Depository (VSD).
However, as Hoang Van Thu, Vice Chairman of the SSC, emphasizes, the bigger challenge is maintaining this new classification. It requires a strong commitment to regulatory reform and active cooperation from all market participants.
The Road to Sustainability
To ensure Vietnam's stock market remains in the 'secondary emerging' category, Thu highlights several key areas of focus. These include continuing to improve the legal framework, streamlining processes, particularly settlement procedures, and most importantly, ensuring the commitment and transparency of market participants, especially listed companies.
The recently promulgated Law No. 56/2024/QH15, along with Decree No. 245/2025/NĐ-CP and Circular No. 19, are designed to enhance market transparency, increase individual accountability, and facilitate access to the capital market for investors and enterprises. These legal documents introduce groundbreaking provisions, aiming to remove barriers and promote the sustainable development of Vietnam's stock market.
Policy Breakthroughs and Their Impact
Thu highlights three major policy breakthroughs under Law No. 56. The first set of policies aims to enhance the transparency and efficiency of securities offerings, aligning with the government's goal of improving the quality of listed securities. The second group of policies focuses on strengthening market oversight, protecting investor rights, and building confidence by revising and improving regulations to prevent fraudulent activities.
The third policy group is dedicated to removing practical bottlenecks and simplifying administrative procedures. This group of policies is crucial for the smooth upgrading and maintenance of Vietnam's market classification.
Decree No. 245 and Circular No. 19 are expected to eliminate many barriers, especially those related to public company registration and the integration of IPOs with listing procedures. By removing unnecessary administrative requirements and duplicative rules, these legal instruments aim to streamline processes and foster a more efficient market environment.
A Call for Sustainable Development
With the spirit of reform embedded in Law No. 56, Thu expresses his hope that this legal framework will soon translate into practical effects, helping Vietnam's stock market develop sustainably. He believes that with continued commitment and cooperation, Vietnam can achieve the goals set by the Party and the Government, ensuring a bright future for its financial markets.
And this is the part most people miss: the journey towards a sustainable and transparent stock market is a continuous process, requiring ongoing reforms and a collective effort from all stakeholders. It's a challenging task, but one that is essential for Vietnam's economic growth and global competitiveness.
What are your thoughts on Vietnam's stock market upgrade and the challenges it faces? Do you think the country is on the right track towards sustainable development? Share your insights and let's spark a discussion!
