With the goal of upgrading the Vietnamese stock market (TSK) stated in Decision No. 1726/QD-TTg of the Prime Minister approving the Strategy for the development of the Vietnamese stock market to 2030 and the Government's guiding documents, in the recent past, the Ministry of Finance and the State Securities Commission have been urgently reviewing and recommending amendments and supplements to legal documents to gradually remove bottlenecks in considering upgrading according to the criteria of international organizations. At the same time, actively coordinate with relevant ministries and branches to resolutely deploy solutions to meet the criteria of market rating organizations towards the goal of upgrading Vietnam's stock market from frontier to emerging market.
According to practice, in March and September every year, the FTSE Russell rating agency will announce a list of upgraded and relegated exchange rates and countries on the monitoring list. In particular, the March assessment period is the mid-term review assessment period, updating the reform progress of countries on the monitoring list.
The September assessment period is the official assessment period and makes a decision on upgrading. Thus, if well assessed, Vietnam may be on the list of secondary emerging markets in September. FTSE Russell's upgrading review process includes an assessment according to FTSE Russell's market quality matrix, which includes 9 criteria for secondary emerging markets.
Up to now, legally, the Ministry of Finance has issued solutions to fully meet the 9 criteria of the FTSE Russell rating organization. However, the experience and positive feedback from foreign investment institutions on the Vietnam stock market is one of the important bases for FTSE to consider upgrading the stock market.
Accordingly, the State Securities Commission is actively implementing solutions to help foreign investment institutions have experience and positive reviews when participating in Vietnam's stock market, contributing to upgrading the stock market.
Solutions implemented in the recent past
Regarding the completion of the legal framework and policies to meet the upgrading criteria: For the 2 criteria Vietnam was assessed as not meeting in the assessment period in September 2024, the Ministry of Finance issued Circular No. 68/2024/TT-BTC and then issued Circular 18/2025/TT-BTC to handle 2 criteria that are assessed as not meeting, including: Criteria " Payment cycle (DvP)" and Criteria " Payment - costs related to failed transactions". Accordingly, the new mechanisms have operated effectively and stably, specifically as follows:
Regarding the NPF mechanism: To date, 10 joint stock companies and 10 depositors have deployed NPF for the foreign-invested enterprise to be an organization. Since the implementation of the KRX system, the total number of NPF transactions has been more than 90,000 transactions with a total value of more than VND20,000 billion (average of more than 6,000 transactions/day, equivalent to VND1,400 billion/day), about 3 times the number of transactions, about 2 times the transaction value compared to the pre- KRX period. The transaction value of NPF currently accounts for about 50% of the total purchase value of the foreign-invested enterprise in the market.
For failed transaction processing mechanisms: The failed transaction processing mechanism operates effectively. Up to now, out of hundreds of thousands of NPF transaction orders, only 4 failed transactions have occurred and have been handled safely and effectively.
Regarding the requirement for public companies to publish information in English according to the roadmap: 100% of listed companies and public companies have published periodic information in English.
deploying the KRX system: On May 5, 2025, the KRX information technology system was officially put into operation. After nearly 3 months of operation, according to the preliminary assessment from the contractor, the operating units and the KRX system have been connected smoothly, operating stably and safely.
The implementation of the KRX system opens up many opportunities in implementing the central clearing mechanism (CCP), new products and services such as waiting-in stock trading, day trading, new derivatives, bond-based products and many other new products, these are necessary factors for the stock market to increasingly meet international market standards.
Building a system for exchanging information between the Notary Bank (NHLK) and the Securities Company (CTCK) to serve the securities trading activities of investors opening deposit accounts at NHLKs (STP system): This system is integrated with the electronic communication portal in VSDC and has been put into operation since March 2025. According to the plan, the system will be upgraded to use SWIFT standard electricity in the near future.
Establish a consulting dialogue group on capital market development to speed up the process of reviewing and upgrading the market: Currently, the consulting dialogue group on capital market development ( IAG group) has 33 members participating in 3 working groups on market development, transactions and after-transaction. The group is responsible for regularly updating issues that need to be overcome to help FDI have the best market experience within the scope of legal regulations, thereby supporting the upgrading.
Closely coordinate with the State Bank of Vietnam (SBV) in developing Circular 03/2025/TT-NHNN (replacing Circular 05/2014/TT-NHNN) regulating the opening and use of accounts in Vietnamese Dong to conduct foreign direct investment activities in Vietnam (effective from June 16, 2025) to simplify procedures to facilitate SBVs participating in Vietnam's stock market.
Increase contact and exchanges with investors and rating organizations: The Ministry of Finance (MOF) actively implements international investment promotion programs to promote Vietnam's stock market and attract interest from global financial institutions, specifically as follows: Investment promotion conferences in Korea and Japan in March 2024 and in Singapore in August 2024, Investment promotion conferences in Hong Kong - Shenzhen (China) and in New York (USA) in April 2025. In addition, the Ministry of Finance and the State Securities Commission also regularly meet and discuss with credit rating organizations and investment institutions to work and discuss at the Ministry of Finance and the State Securities Commission and organize many important seminars to discuss solutions to upgrade the stock market.
Some solutions will continue to be implemented in the near future
Regarding the limitation of foreign ownership ratio: The content of the foreign ownership ratio (SHNN) is being amended and supplemented in the Draft Decree amending and supplementing a number of articles of Decree 155/2020/ND-CP with 2 main contents: General companies must complete the notification of SHNN ratio within 12 months from the effective date of the Decree to make transparent information about the SHNN ratio and remove the regulation on the General Meeting of Shareholders having the right to decide on the SHNN ratio. Currently, the Draft Decree is being submitted to the Government for consideration and approval.
In the coming time, regarding the content of the SHNN ratio, the Ministry of Finance will implement a number of solutions as follows:
Coordinate with ministries and branches to review in detail business lines to reduce business lines with limited state-owned enterprises (except for industries related to security and defense), thereby increasing the participation rate of state-owned enterprises in enterprises;
Worldwide propaganda to businesses to proactively review their business lines in detail, cut down on business lines that businesses register for but do not have actual business activities, focus on key industries to increase the participation rate of foreign investors in businesses.
Regarding solutions to implement the central clearing mechanism (CCP): Currently, the legal basis in the Securities Law and Decree 155/2020/ND-CP for the implementation of CCP is basically complete, and the technical infrastructure has also been integrated into the KRX system under implementation. Accordingly, there are only a few other related documents that need to be reviewed for amendment and supplementation, such as some regulations on financial management, accounting regimes for subsidiaries implementing CCP, and some processes and regulations related to clearing and settlement activities. The State Securities Commission has announced a specific roadmap for implementing the CCP mechanism in early 2027. On that basis, the SSC will urgently deploy the CCP mechanism in accordance with the set roadmap.
Regarding the Draft Circular amending and supplementing a number of articles of Circular 17/2024/TT-NHNN regulating the opening and use of payment accounts at payment service providers: The Ministry of Finance (MOF) continues to closely coordinate with the State Bank in drafting the Circular to simplify procedures for opening, closing and using payment accounts, creating more convenience for FDI participating in the VNDTC.
Regarding solutions to increase market depth and diversify financial products in the market: In the coming time, assigned by the Ministry of Finance in the coming time, the State Securities Commission will focus on implementing a number of solutions as follows:
Strengthen the development of new products and products that meet sustainable development trends such as ESG, green bonds, construction bonds for infrastructure investment;
Promote equitization of state-owned enterprises and divestment of state capital;
Amend and supplement Decree 155/2020/ND-CP in the direction of linking IPO with listing, shortening the process of listing stocks after IPO to attract businesses;
Put enterprises that are public companies with FDI origin on the list/register for transactions;
Research and develop and deploy new market segments according to international practices such as carbon credit exchanges, capital trading markets for innovative startups to diversify supply in the market, in line with the green economic development strategy and promote the innovative startup ecosystem in Vietnam, build a legal framework to pilot the digital asset trading market;
Amend and supplement Decree 155/2020/ND-CP in the direction that cases of public bond issuance must have a credit rating for bonds or organize a rating to improve publicity and transparency in public bond offering activities.
Coordinate with foreign securities exchanges, organize rankings and build an index set: The State Securities Commission directs the Foreign Securities Exchanges (SGDCK) to coordinate with foreign SGDCK and market rating organizations such as FTSE Russell, MSCI to develop new securities index sets, to increase the ability to attract international investment flows. The construction of common index sets with the participation of rating organizations not only strengthens investor confidence, but also helps position the Vietnamese stock market on the global financial map.
Regarding the stock listing table: According to the trading market arrangement and classification orientation, Ho Chi Minh City stock market (HOSE) will trade listed stocks, Hanoi stock market (HNX) will trade bonds, derivatives and Upcom. It is expected that in the coming time, listed stocks from HNX will be transferred to HOSE and the listing table will be divided according to a number of criteria such as capitalization scale, corporate governance situation, transparent information disclosure, etc. This market segmentation is in line with international practices, creating a basis for investors to access complete and convenient corporate information, attracting investment in different market segments.
Build a system of information technology and data for the entire market to serve the management and supervision of the management agency: The State Securities Commission has proposed to the Ministry of Finance to build a shared market data system to serve the management and supervision of the State Securities Commission. This system will provide a complete database of the stock market, effectively serving the management, supervision and risk warning work for management agencies. Thereby, not only improving the transparency of the market, but also contributing to strengthening the confidence of domestic and foreign investors. The system is expected to be completed and put into operation in 2026.
In the journey towards the goal of upgrading the stock market from frontier to emerging market, Vietnam needs to continue to make comprehensive efforts, from perfecting the legal framework, improving the quality of information disclosure, improving technology infrastructure, to strengthening market discipline and protecting investors. This is not only a technical requirement, but also a symbol of a modern, transparent and integrated financial market.
The State Securities Commission will continue to proactively coordinate with domestic and foreign agencies and organizations, especially the business community and media agencies, to realize this goal. The upgrade not only means raising the capital market, but also promotes economic growth and affirms Vietnam's position on the global financial map.
