Post-upgrade market reforms gather pace

Vietnam is set to move forward with measures to facilitate foreign participation in its stock market following its upgrade, with policy attention shifting towards operational improvements, legal adjustments, and product development.

- By Kaitlyn Le

The State Securities Commission of Vietnam (SSC) on April 15 held a working session with an FTSE Russell delegation to focus on solutions to improve market access for foreign investors.

SSC chairwoman Vu Thi Chan Phuong thanked FTSE Russell for its positive assessments, which recognise Vietnam's progress in policy reform, improvements to the legal framework, and market management. She also provided updates on market conditions and recent regulatory reforms aimed at increasing foreign investor participation.

"We commended the initial results of the cooperation agreement between FTSE Russell and the Vietnam Exchange, particularly in information exchange, sharing international experience, and developing market indices. The SSC will continue to support both parties to ensure effective collaboration," she added.

At the event, Gerald Toledano, global head of Custom Solutions and Alternatives at FTSE Russell, welcomed Vietnam's confirmation of its upgrade in the March review, alongside the roadmap for including Vietnamese equities in FTSE's All-World Index.

"Over a long period, FTSE Russell has not recorded many markets being upgraded to emerging status. Vietnam's upgrade is not only significant for the domestic market but also helps set a higher benchmark. Markets aiming for future upgrades will need to make stronger efforts to achieve results similar to Vietnam," Toledano said.