On September 14, the Government Office announced that Deputy Prime Minister Ho Duc Phoc had signed the Prime Minister's Decision 2014QD-TTg approving the Project to upgrade the Vietnamese stock market.
The overall goal of the project is to develop the stock market into an important medium and long-term capital mobilization channel for economic development, perfect the market economy institution under state management, and strengthen regional and international economic integration.
Short-term goals: Fully meet FTSE Russell's criteria for upgrading from frontier to secondary emerging market in 2025; maintain FTSE Russell's secondary emerging market ranking.
Long-term goal: meeting MSCI's criteria for upgrading to emerging market status and FTSE Russell's high-level emerging market status from now until 2030.
Group of tasks and solutions to meet FTSE Russell's criteria for upgrading to a secondary emerging market:
- transparent information on the maximum foreign ownership ratio in all fields, creating equal access to information for foreign investors.
Group of tasks and solutions to maintain rankings in the short term:
- Proposing solutions to stabilize the foreign exchange market to respond to fluctuations in foreign investment flows.
- Strengthen the capacity of the transaction and payment system to meet large transaction volumes.
- Strengthen the management and supervision capacity of the stock market management agency (State Securities Commission) on personnel, upgrade the information technology system for supervision management.
Strengthen coordination within the securities industry and inter-sectoral coordination between the Ministry of Finance, the State Bank of Vietnam and the Ministry of Public Security in monitoring activities in the stock market to better support the management of each industry, improve the effectiveness of crime prevention and control, ensure security and safety of the system.
Group of tasks and solutions to meet the criteria for upgrading to a high-level emerging market of FTSE Russell, MSCI's emerging market:
- Review legal regulations on foreign ownership ratios to increase the maximum foreign ownership ratio and remove from the list of industries that do not need to limit foreign ownership ratios.
- Develop advanced payment and clearing infrastructure to meet the payment mechanism for transactions that do not require a 100% deposit, the Central Deposit Insurance (CCP) Partnership mechanism.
- Research and apply a roadmap to allow loans and lending of securities, counterfeit sales controlled through the mechanism of selling securities waiting to return, trading on the day.
