Việt Nam's stock market moves closer to global upgrade: MoF

Việt Nam's stock market moves closer to global upgrade: MoF

Việt Nam’s efforts to upgrade its stock market have received positive recognition from global index provider FTSE Russell.

The next FTSE Russell market classification will be announced on October 7, 2025. Photo baotintuc.vn

Việt Nam’s efforts to upgrade its stock market have received positive recognition from global index provider FTSE Russell, particularly after recent reforms that removed the pre-funding requirement, according to the Ministry of Finance on September 5.

Circular 68, issued on September 18, 2024, and effective from November 2, 2024, officially removed the pre-funding requirement for foreign institutional investors.

FTSE Russell welcomed this step, noting it aligns Việt Nam’s market with global practices, along with other reforms such as the launch of the KRX trading system, updated settlement rules and a new legal framework.

The next FTSE Russell market classification will be announced on October 7, 2025.

To support a market upgrade, the Ministry of Finance said it is improving the legal framework in line with international standards, requiring public firms to disclose foreign ownership more clearly and seeking changes to the Investment Law to allow higher foreign ownership in non-sensitive sectors.

The ministry is also working with the State Bank of Vietnam to revise rules on payment accounts, making it easier for foreign investors by allowing authorised financial institutions to manage accounts and removing requirements such asconsular legalisation, biometric checks, and excessive paperwork.

According to the ministry, these ongoing reforms are expected to provide international investors with a more transparent, convenient and accessible market, thereby supporting Việt Nam’s goal of achieving an upgraded status in the global market rankings. 

Bizhub