CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

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 / Banking & Finance
Vietnam remains in FTSE Russel’s watchlist for reclassification to Secondary Emerging
Ngoc Mai 13:45, 2019/09/27
The country is on track for classification as Secondary Emerging in the review on September 2020, in case of meeting all criteria of FTSE Russell.
Vietnam is retained on the watch list for possible reclassification from Frontier to Secondary Emerging, announced FTSE Russell, a leading global provider of financial services, in the 2019 annual country classification on September 26. 
 
Illustrative photo.
Illustrative photo.
The result did not come as surprise from previous prediction as Bao Viet Securities Company (BVSC) assessed Vietnam’s stock market has not made any significant improvement from the time FTSE placed Vietnam on the list for possible upgrading in September 2018, especially when the amended Securities Law has not yet been approved by the National Assembly (conceivably submitted to National Assembly in the 8th meeting session in late October and November). 

According to the results of the temporary review in March 2019, Vietnam has met seven out of nine prerequisites to be upgraded to a secondary emerging market. The remaining two criteria are "Settlement – Rare incidence of failed trades" and " Off-exchange transactions permitted". 

The second criterion is now assessed as “Not met”, while for the first criterion, FTSE indicates N/A, meaning further information is required for assessment. 

However, in FTSE’s matrix table, there are a few cases of other stock markets. Several countries, despite not meeting all  of the nine prerequisites, were placed in the secondary emerging market list, such as the Philippines, Peru, Chile, Colombia, and Qatar. 

FTSE Russell said there has been engagement with Vietnam’s stock market authorities over the last 12 months and noticed the latter’s efforts to improve the market. 

Following the result, Vietnam would continue to remain in the watch list. The country is on track for classification as Secondary Emerging in the review on September 2020, in case of meeting all criteria of FTSE Russell.

At the Vietnam Economic Forum on Capital-Finance Market in Hanoi in last August, Deputy Prime Minister Vuong Dinh Hue said the Vietnamese government is determined to work for the upgrade of the local stock market to emerging market status soon.

Chairman of the State Securities Commission of Vietnam Tran Van Dung affirmed that with drastic measures from the government in creating a level playing field for both local and foreign companies, Vietnam can achieve the target of becoming an emerging securities market in the next two years.

For this year's review, Romania, currently a Frontier market, will be reclassified as a Secondary Emerging market, while Tanzania, currently unclassified, to be included as a Frontier Market. All changes are effective from September 2020.

Notably, Argentina is removed from the Watch List for possible reclassification to Secondary Emerging market status due to the imposition of capital controls.
Comments
Other news
15:44, 2024/11/14
IFC sets record with US$1.6 in climate financing to support Vietnam’s green transition
The new commitments aim to bolster Vietnam's shift towards a low-carbon economy while enhancing private-sector resilience and competitiveness.
21:44, 2024/11/11
Vietnam's credit growth up 10% in 10 months
Vietnam’s central bank has set a credit growth target of around 15% this year.
08:08, 2024/10/05
Building Hanoi's smart city with smart banking
In Hanoi's smart city development strategy, smart payment and open banking ecosystems are critically important.
21:34, 2024/09/19
Vietnam stock market clears major legal hurdle to potential upgrade
Starting November 2, foreign investors will no longer be required to pre-fund 100% of their transactions, promising the removal of a major roadblock for Vietnam's market upgrade process.
17:29, 2024/09/01
Cashless parking in Hanoi: Good model fuels smart transport
Hanoi’s leaders believe that all that's left to do is act with the ultimate goal of serving people from smart transportation, armed with the mindset and solutions of a new global vision and thinking.
22:36, 2024/08/26
Banking sector dominates Vietnam’s corporate bond market
The increase in bank bond issuance is largely driven by the need to comply with the State Bank of Vietnam’s capital adequacy requirements.