Vietnam Nears Emerging Market Status

Vietnam Nears Emerging Market Status

Thanh Tú7/18/2025

1. Vietnam Committed To Capital Market Reform

 

At the meeting, Minister Nguyễn Văn Thắng emphasized that Vietnam remains steadfast in its commitment to comprehensive capital market reform, aiming to gradually meet the stringent criteria required for an upgrade. This upgrade not only boosts investor confidence but also promotes a more transparent, fair, and efficient stock market.

He also highlighted that international support plays a crucial role in accelerating Vietnam’s roadmap to achieve an upgrade in the upcoming September review.

 

Minister of Finance Nguyen Van Thang at a meeting with FTSE Russell representatives, July 17.

Minister of Finance Nguyen Van Thang at a meeting with FTSE Russell representatives, July 17 Photo: MOF

 

2. Removing Barriers To Attract Foreign Capital

 

The Ministry of Finance is actively amending regulations related to foreign ownership limits, eliminating outdated restrictions to broaden access for international investors. At the same time, mechanisms for public offerings and securities issuance are being improved to enhance product quality and market capitalization.

In addition, the list of conditional investment sectors is under review to narrow restricted areas, facilitating deeper participation of foreign investors.

 

3. Enhancing Transparency Through Technology

 

The Ministry of Finance is working with the State Bank of Vietnam to simplify investment procedures for foreign investors. It is also increasing the use of digital technology in licensing and supervision processes to boost transparency, reduce processing time, and cut transaction costs.

One key initiative is the planned launch of a central counterparty clearing (CCP) mechanism in 2027, built on the KRX system that officially went live in May. A legal framework is also being developed to help foreign investors access currency risk hedging products.

 

4. FTSE Russell Ready To Support Vietnam’s Market Upgrade

 

Gerald Toledano, Global Head of Equities and Multi-Asset Products at FTSE Russell, stated that the organization has been working closely with the State Bank of Vietnam to develop benchmark indices that help manage financial risk. FTSE Russell is committed to supporting Vietnam in upgrading its market infrastructure, paving the way for greater foreign capital inflows.

 

A FTSE Russell representative speaking at the meeting, July 17. Photo: MOF

A FTSE Russell representative speaking at the meeting, July 17. Photo: MOF

 

5. Market Upgrade Could Unlock $25 Billion By 2030

 

According to World Bank estimates, an upgrade to emerging market status could help Vietnam’s stock market attract up to $25 billion in foreign investment by 2030. This would significantly enhance liquidity and market size, aligning Vietnam with other countries of similar development levels and providing a strong boost to the national economy.