Assessing the possibility of early stock market upgrade

Gia Miêu |

It is still too early for Vietnam's stock market to be upgraded in the FTSE Russell results announcement in October.

That is the view given by experts from ACBS Securities Company's Analysis Center in a report on the prospects of upgrading the stock market.

It can be seen that upgrading the stock market is one of the major goals that the Vietnamese Government is aiming for. On September 18, 2024, the Ministry of Finance issued Circular 68/2024/TT-BTC (effective from November 2, 2024) creating a legal corridor for the "short of money transaction" product for foreign institutional investors. The newly issued Circular has many notable points, including the regulation that foreign institutional investors can trade to buy stocks without requiring sufficient money (Non Pre-funding solution - NPS).

ACBS assessed that removing the 100% margin requirement before trading for foreign investors is a key condition for Vietnam to be upgraded to a secondary emerging market by FTSE.

However, experts from the ACBS Analysis Center believe that it is too early for Vietnam to be upgraded in the FTSE Russell results announcement on October 8, 2024. Because securities companies need time to build processes and deploy this product, before FTSE surveys and collects opinions from market participants to decide whether to upgrade the Vietnamese stock market or not?

ACBS's analysis center assessed that in terms of risks in implementing short-money transactions, securities companies currently have sufficient capital capacity to apply. However, the implementation of actual short-money transaction products will also put pressure on them to build a more professional risk management system, and at the same time, they need to increase their equity capital to meet the short-money transaction needs of foreign institutional customers in the future.

ACBS expects FTSE to add Vietnam to its secondary emerging market list as early as the March 2025 review. According to ACBS, the upgrade to emerging market status will be a significant milestone for the Vietnamese stock market to be recognized as a market with investment accessibility for foreign investors.

It is expected that the proportion of Vietnamese stocks will account for about 0.7 - 0.9% of FTSE's secondary emerging market portfolio and Vietnam will attract capital flows of 500 - 600 million USD from index-simulating ETFs, not to mention capital flows from active funds.

Regarding the criteria that Vietnam "has not met" to be upgraded to MSCI's emerging market and FTSE's advanced emerging market, the analysis team found that it needs more time to resolve, including: Reducing foreign ownership limits, having a developed foreign exchange market, enhancing equal access to information and fair treatment for retail investors, and having a central clearing house (CCP).



Gia Miêu
TIN LIÊN QUAN

Minister of National Defense chaired the Conference on handover of the position of Commander of Military Region 7

|

HCMC - On July 9, General Phan Van Giang, Politburo member, Deputy Secretary of the Central Military Commission, Minister of National Defense chaired the Conference to hand over the position of Commander of Military Region 7.

Hanoi sets out the principles for arranging commune-level cadres and civil servants

|

Hanoi - The arrangement of commune-level civil servants and public employees is carried out according to the principle of maintaining existing staff, allocating them in accordance with job positions and training levels.

Close-up of the proposed street named Hang Long

|

Hanoi - The name of Hang Long ancient town is proposed to be restored, giving the name to the road from Tran Binh Trong intersection to Yet Kieu intersection.

Noi Bai - Lao Cai Expressway is expected to be expanded to 4 lanes in September 2025

|

Lao Cai - The Standing Committee of the Provincial Party Committee and the Vietnam Expressway Corporation (VEC) agreed to soon upgrade the Yen Bai - Lao Cai Expressway to 4 lanes.

Hundreds of dead pigs discovered floating on canals in Thanh Hoa

|

Thanh Hoa - Since the beginning of July, nearly 100 dead pigs have been thrown floating on the North Canal and related canals, causing serious environmental pollution.

Bank stocks are the driving force of the stock market

Gia Miêu |

The stock market is on a positive upward trend, even reaching the strong resistance level of 1,300 points at one point.

Opportunity to catch the stock market's uptrend at the end of the year

Gia Miêu |

Money flow is waiting to be activated when the stock market breaks through the resistance at 1,300 points.

MSCI: Việt Nam nâng hạng thị trường chứng khoán đúng hướng

Linh Đan |

Hôm nay 8.8, Chủ tịch Ủy ban Chứng khoán Nhà nước Vũ Thị Chân Phương đã có buổi làm việc với MSCI về giải pháp nâng hạng thị trường chứng khoán Việt Nam.

Thêm bước tiến trong lộ trình nâng hạng thị trường chứng khoán

Đức Mạnh |

Ủy ban Chứng khoán Nhà nước công bố dự thảo Thông tư sửa đổi, bổ sung 4 thông tư về giao dịch, về đăng ký, lưu ký và thanh toán bù trừ, về hoạt động của công ty chứng khoán và về công bố thông tin. Đây là bước tiến quan trọng, hướng tới nâng hạng thị trường chứng khoán Việt Nam từ cận biên lên mới nổi.