WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Trade - Service
Vietnam eyes stock market’s upgrade to emerging status before 2025
Ngoc Mai 13:45, 2022/07/05
The ministry has been in frequent contact with both MSCI and FTSE Russell to update new information and their requirements to finalize the legal framework or address shortcomings in the market.

The Ministry of Finance expects the local stock market to upgrade from its current frontier market status to an emerging one before 2025.

 Investors at a securities company in Hanoi. File photo

Deputy Minister of Finance (MoF) Nguyen Duc Chi share the view at the Government’s monthly press briefing on July 4.

According to Chi, the goal is included in the draft strategy for Vietnam’s stock and insurance market development until 2025, with a vision for 2030.

In a detailed report published by the MoF, the ministry stressed the market’s upgrade prospects do not depend on the view of the authorities, but on financial services providers such as FTSE Russell or MSCI along with their respective evaluation procedures.

The MoF, however, has been working on improving the probability of a market upgrade, including the issuance of the Law on Securities in 2019, and the revision of the Law on Investment and Business Law in 2020, which provided positive changes regarding the ownership limit of foreign investors; simplified procedures for investment capital, information access; opening investors’ accounts; new financial instruments and products diversification.

“The MoF has been in frequent contact with both MSCI and FTSE Russell to update new information and their requirements to finalize legal framework,” he said.

In the coming time, the MoF would continue to focus on putting into operation the new transaction system for the stock market; diversifying market products with higher quality to attract foreign investors; supporting public companies in raising corporate governance capability; promoting green products and financial schemes.

In the latest move, the stock market is set to allow shares to be transferred to investors’ accounts within the trading hours of T+2, instead of T+3.

General Direct of VinaCapital Don Lam in a recent conference suggested Vietnam’s stock market upgrade would bring in billions of dollars from foreign investors.

Sharing the view, Economist Can Van Luc said an emerging market status would benefit Vietnam’s credibility in the global capital market and eventually lead to a higher sovereign rating.

On May 26, S&P Global Ratings raised its long-term foreign and local currency sovereign credit ratings on Vietnam to ‘BB+’ from ‘BB’. The rating agency also affirmed the country’s short-term rating at ‘B’ with a stable outlook.

S&P attributed favorable changes in the policy environment to its evaluation, saying they have bolstered investor confidence in the country's economic and financial stability.

RELATED NEWS
TAG: Vietnam finance ministry vietnam frontier market vietnam emerging status Vietnam stock market
Other news
20:11, 2024/07/23
Vietnam targets US$7,500 GDP per capita by 2030
By the end of this decade, Vietnam is expected to be among the top three Southeast Asian countries in terms of industrial competitiveness.
16:07, 2024/07/20
Gov’t mulls creation of oil and gas trading exchange
Such a platform would help minimize price manipulation, ensure a flexible pricing mechanism, and improve the distribution and circulation of oil and gas.
21:59, 2024/07/19
Hanoi promotes women's role in safe agri-food trade
The city will focus on strengthening enforcement of food safety regulations in food production and trade facilities.
16:17, 2024/07/17
Vietnam’s stock market set for strong year-end growth
The projected P/E ratio for the VN-Index this year is 11.5, below the 5-year average of 13.4, potential for the benchmark to rise in the second half of the year and 2025.
09:56, 2024/07/17
Hanoi ramps up food safety inspections, identifying and rectifying violations
The city's health department will continue to carry out regular, specialized and random inspections.
16:37, 2024/07/16
Vietnam under pressure to achieve high growth in 2024-2025
The Government's best-case growth scenario for 2024 is 6.5-7%, higher than the goals set by the National Assembly and forecasts by international organizations.