Want to be in the loop?
subscribe to
our notification
Business News
VIET NAM EYES EMERGING STOCK MARKET STATUS BY 2025
Việt Nam is working hard to have its stock market upgraded from frontier status to an emerging market by 2025.
Vũ Thị Chân Phương, Chairwoman of the State Securities Commission of Việt Nam (SSC), said that upgrading the status of the stock market is one of the major targets of the Government. The country hopes to obtain the emerging market status before 2025.
According to Phương, in terms of the legal framework, the 2019 Securities Law, the 2020 Investment Law, the 2020 Law on Enterprises, and the documents guiding their enforcement have created optimal conditions for investment flows, facilitated access to information in English as well as registration and opening accounts of investors, and enhanced market transparency, thus gradually meeting the criteria for market upgrade.
Aside from growing in terms of size and liquidity, Việt Nam's stock market has also become increasingly transparent and healthy thanks to the stringent settlement of violations. A number of businesses have also proactively released information in English. Among them, all of those in the VN30 Index group, which measures the 30 largest stocks by market capitalisation, have disclosed information in English.
Transparent regulations improve market viability, as seen in the Government’s Decree No 155/2020/NĐ-CP and the Finance Ministry’s Circular No 96/2020/TT-BTC.
The SSC would revise legal documents to improve the transparency and sustainability of the stock market, Phương noted.
Lyndon Chao, a representative of the Asia Securities Industry and Financial Markets Association (ASIFMA), said Việt Nam was one of the fastest growing economies in Asia, posting the world’s fastest growth. It was also a beneficiary of global supply chain diversification and a rising middle class.
He said global investors were increasing investment in Asia, and Việt Nam would be an outstanding destination in the future as authorities reform the market to provide easier access to global fund managers.
Financial experts have pointed out that MSCI and FTSE Russell, the two most important international organisations in stock market classification, still list Việt Nam as a frontier market. Meanwhile, neighbouring countries like Thailand, Indonesia, Malaysia, and the Philippines have for years been designated as emerging markets.
Many foreign investors see the value in Việt Nam’s stock market and want to invest in the future here. What the country needs to do now is to keep promoting the market’s transparency and provide more favourable conditions for foreign investors, according to the experts.
If MSCI and FTSE Russell upgrade the stock market of Việt Nam to an emerging one, billions of dollars are expected to pour into Vietnamese stocks each year.
According to major international rating agencies and financial institutions, the country has made improvements and satisfied many important criteria. However, two issues still need major improvements in support of foreign investors. The improvements include the prefunding requirement and the foreign ownership limit, both of which require practical coordination among stakeholders such as the State Bank of Việt Nam and the Ministry of Planning and Investment.
Experts have also highlighted the importance of securities companies and banks, saying the upgrade will help expand the market size considerably, so operating systems and risk management processes must be top notch to meet transaction-related requirements.
In addition, the SSC should press on with perfecting the new IT system for the stock market, diversifying and bettering the quality of products in the market to attract foreign investors, and developing products related to green growth and sustainable development.
Source: VNS
Related News
VN SHOULD FOCUS ON DEEPER INTEGRATION INTO THE GLOBAL SUPPLY CHAIN NETWORK
As international businesses look to create new links in the global supply chain, Việt Nam, as well as the rest of the Southeast Asia region, can emerge as a major destination for foreign direct investment (FDI), said economists and policymakers.
VIETNAM’S TEXTILE SECTOR AIMS FOR US$44 BILLION EXPORTS
Vietnam’s textile and garment industry is ramping up production in the final months of 2024 to reach its export target of US$44 billion, according to the Ministry of Industry and Trade. Textile production in September increased by a marginal 0.1% against the previous month but surged by 11.2% year-on-year.
DEX CONNEX VIETNAM 2024: UNLOCK BUSINESS OPPORTUNITIES WITH MALAYSIA'S LEADING TECH COMPANIES
On behalf of Sunwah Group Vietnam and Sunwah Innovations, in collaboration with the Malaysia Digital Economy Corporation (MDEC), we are delighted to cordially invite you to participate in DEX Connex Vietnam 2024 on Thursday, 14 November 2024 in Ho Chi Minh City.
VIETNAM MAY BE ONE OF THE FASTEST-GROWING EMERGING MARKETS BY 2035
The S&P Global Look Forward Journal, titled "Emerging Markets: A Decisive Decade", which considers the opportunities and challenges the next decade will bring for emerging markets' economic growth in terms of energy transition, supply chain integration, and labour productivity.
YEN BAI INDUSTRIAL ZONES AUTHORITY BOOSTING INVESTMENT PROMOTION AND ATTRACTION
The Yen Bai Industrial Zones Authority has actively diversified investment promotion and attraction forms for local industrial zones and achieved positive outcomes in recent years, helping improve the vibrant, high-quality and effective investment and business climate in local industrial zones.
NON-BANK CORPORATE BONDS FORECAST TO RECOVER IN YEAR-END MONTHS
Under an October 2024 corporate bond market report released recently, analysts of the rating agency FiinRatings said that the US Federal Reserve (Fed)'s first interest rate cut in four years was a positive sign for the Vietnamese exchange rate, after the State Bank of Vietnam (SBV) continuously sold the US dollar due to high capital withdrawal demand.