FTSE Russell, SSC discuss next steps after Vietnam market upgrade

FTSE Russell, SSC discuss next steps after Vietnam market upgrade

The State Securities Commission and FTSE Russell have held talks on next steps following Vietnam's stock market upgrade, focusing on index development and regulatory reforms.

Gerald Toledano, global head of Custom Solutions & Alternatives at FTSE Russell (fourth from right) and SSC chairwoman Vu Thi Chan Phuong (fifth from right). Photo: SSC

The meeting took place on April 15, following FTSE Russell’s March interim review, which confirmed progress towards upgrading Vietnam to Secondary Emerging Market status. Both sides discussed measures to facilitate foreign participation, including enhancing the legal framework, reducing business conditions, and advancing the central counterparty clearing mechanism

State Securities Commission (SSC) chairwoman Vu Thi Chan Phuong thanked FTSE Russell for its positive assessments, which recognise Vietnam’s progress in policy reform, improvements to the legal framework, and market management. She also provided updates on market conditions and recent regulatory reforms aimed at increasing foreign investor participation.

"We commended the initial results of the cooperation agreement between FTSE Russell and the Vietnam Exchange, particularly in information exchange, sharing international experience, and developing market indices. The SSC will continue to support both parties to ensure effective collaboration," she added.

Speaking at the meeting, Gerald Toledano, global head of Custom Solutions and Alternatives at FTSE Russell, congratulated Vietnam on its confirmed upgrade to Secondary Emerging Market status and the planned inclusion of Vietnamese equities in the FTSE All-World Index.

"For a long time, FTSE Russell has not recorded any additional cases of markets being upgraded to emerging market category," Toledano said. "The upgrade of Vietnam's securities market is of great significance for the domestic market and helps establish a new, higher benchmark. Markets aiming for future upgrades will need to make greater efforts to achieve results similar to those of Vietnam."

Toledano noted significant potential for further cooperation and reaffirmed their commitment to partnering with Vietnam to develop its securities market, particularly by creating new products and indices that meet international standards.

He went on to explain that a comprehensive global index system enables international investors to access the Vietnamese market more easily through index-tracking funds and passive investment products. This enhances market accessibility and supports the growth of foreign investment in Vietnam.

The two sides discussed operational solutions to enhance convenience for foreign investors, including improving the legal framework by reducing business and investment conditions, simplifying administrative procedures, and advancing the development of Vietnam’s securities clearing and settlement system under a central counterparty mechanism.

After the meeting, both sides agreed to strengthen cooperation, particularly by promoting research and development of new products aligned with international practices to diversify market offerings. This will expand investment opportunities, enhance competitiveness, and attract both domestic and foreign capital to Vietnam’s securities market.

The FTSE All-World Index is one of the world's most recognised benchmarks for global equities, covering approximately 4,200 large and mid-cap stocks across developed and emerging markets in more than 45 countries. As part of the FTSE Global Equity Index Series, it represents around 90-95 per cent of the world's investable market capitalisation, offering broad, transparent exposure to global equities in a single measure.

VIR