Ministry strengthens ties with LSE, FTSE Russell to boost financial market

Ministry strengthens ties with LSE, FTSE Russell to boost financial market

The partnership is designed to bolster the Vietnamese stock market's ability to attract more international investment.

Minister of Finance Nguyễn Văn Thắng with leaders from the London Stock Exchange (LSE) and FTSE Russell in London. — VNA/VNS Photo

Vietnamese Minister of Finance Nguyễn Văn Thắng met with leaders from the London Stock Exchange (LSE) and FTSE Russell in London on September 15 (local time), marking a significant step in enhancing collaboration and advancing Việt Nam's financial market.

During the meeting, Minister Thắng praised existing cooperation between the LSE, FTSE Russell and the State Securities Commission of Vietnam (SSC).

He expressed gratitude for their ongoing support in Việt Nam’s market reforms and efforts to meet the criteria to upgrade its stock market status.

The minister said that SSC Chairwoman Vũ Thị Chân Phương would also meet with FTSE Russell to discuss market upgrade issues.

The Ministry of Finance (MoF) is organising an investment promotion conference in London on September 16, aimed at providing comprehensive information about Việt Nam's financial market to investors.

"We are implementing strong reforms and policies to facilitate foreign investment in Việt Nam's stock market," Thắng said.

The finance minister also highlighted the importance of sharing experiences in developing a robust legal framework and improving market oversight. Việt Nam aims to enhance transparency, safety and global integration, he said, emphasising the country's desire to learn from international standards on corporate governance and sustainable growth (ESG).

In an effort to diversify its financial products, Việt Nam's financial sector is keen to develop green bonds and sustainable securities, alongside derivative instruments. 

Thắng also proposed advancing joint investment promotion programmes and promotional activities to foster deeper connections between Vietnamese businesses and international investors, particularly in the UK and Europe.

Vietnamese businesses are interested in receiving support for training and enhancing financial market awareness among local professionals, as well as leveraging technology like Fintech, AI and blockchain to improve market efficiency, according to Thắng.

"With strong cooperation, support and partnership from the LSE, the Vietnamese stock market, as well as the broader financial sector, is set to experience substantial growth," he said.

"This progress will significantly contribute to the shared prosperity of both nations and benefit the region and the world."

Minister of Finance Nguyễn Văn Thắng with leaders from the London Stock Exchange (LSE) and FTSE Russell in London. — VNA/VNS Photo

LSE CEO Julia Hoggett agreed with Thắng's views, expressing confidence in the Vietnamese stock market's future growth. She promised continued support from the LSE to assist Việt Nam in its aspirations to elevate its market to emerging status.

She said she expects collaboration between the two parties to reach new heights, with the LSE serving as an effective gateway for the Vietnamese market to connect with various other markets around the world.

Recognising the need for ongoing reform and innovation, leaders from both sides concluded their meeting with a commitment to strengthen collaboration across multiple areas.

This partnership is designed to bolster the Vietnamese stock market's ability to attract more international investment. Effective reforms recently undertaken by the Vietnamese Government, acknowledged by FTSE Russell in the context of upgrading the market, will play a crucial role in achieving this objective.

At the meeting, delegates also witnessed the signing of a Memorandum of Understanding (MOU) between the Vietnam Stock Exchange (VNX) and FTSE International Limited, officially establishing a strategic partnership aimed at enhancing capital market infrastructure and fostering international integration for Việt Nam.

As of late August, Việt Nam's total stock market capitalisation reached nearly US$352 billion, equivalent to 79.5 per cent of its estimated GDP for 2024, reflecting a substantial increase in market liquidity, with several sessions recording transaction values exceeding $3 billion. 

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