PM orders accelerated reforms to lift Việt Nam’s stock market to global standards

PM orders accelerated reforms to lift Việt Nam’s stock market to global standards

The move comes just after FTSE Russell publicly upgraded Việt Nam from a frontier market to a secondary emerging status.

Investors at a securities firm in  Hà Nội. — Photo bnews.vn

Prime Minister Phạm Minh Chính has issued Directive No. 192, setting a national ambition to elevate Việt Nam’s stock market to higher international standards, following FTSE Russell’s recent upgrade of the country from a frontier market to secondary emerging status.

The move marks a defining moment for Việt Nam’s capital markets, with the Government expecting deeper integration into global finance, increased foreign participation and a more transparent, resilient market infrastructure.

In his directive, the Prime Minister acknowledged the intensive reform efforts by the Ministry of Finance (MoF), the State Securities Commission (SSC), the State Bank of Việt Nam (SBV), exchanges and market intermediaries.

Under the directive, the MoF is tasked with leading the implementation of the stock market upgrade plan anchored in Decision 2014. It will work alongside the SSC and other relevant bodies to complete the transition in line with FTSE’s schedule and expectations.

Key priorities include finalising legal and regulatory frameworks, streamlining administrative procedures, digitalising market infrastructure and strengthening corporate governance and market supervision.

The Government also aims to curb manipulative practices such as ballooning and improper trading activity.

Việt Nam plans to introduce a central counterparty (CCP) model for its underlying stock market by early 2027 to enhance the safety and efficiency of clearing and settlement, with the central bank directed to coordinate closely with the SSC and the MoF.

Additionally, authorities are instructed to simplify account setup procedures for foreign and domestic investors, particularly by improving access channels for global brokers. A review of foreign ownership limits in non-strategic sectors is also on the agenda. 

Bizhub