SSC, FTSE Russell discuss steps to boost foreign inflows after market upgrade

SSC, FTSE Russell discuss steps to boost foreign inflows after market upgrade

The meeting on April 15 came after FTSE Russell’s review in March signalled progress in upgrading Việt Nam to secondary emerging market status.

Representatives of the State Securities Commission of Vietnam and FTSE Russell pose for photo. — Photo baochinhphu.vn

The State Securities Commission of Vietnam (SSC) held talks with FTSE Russell on the next steps to take following the country’s recent stock market upgrade, focusing on index development, new investment products and regulatory reforms to attract foreign capital inflow.

The meeting on April 15 came after FTSE Russell’s review in March signalled progress in upgrading Việt Nam to secondary emerging market status.

SSC’s Chairwoman Vũ Thị Chân Phương said the regulator is hastening efforts to improve market access for foreign investors, including enhancing the legal framework, increasing transparency and easing entry conditions.

Phương also noted initial progress in cooperation between FTSE Russell and the Vietnam Stock Exchange in information sharing, international best practices and the development of market indices, adding that the regulator would maintain close coordination to ensure effective outcomes.

Gerald Toledano, global head of FTSE Russel’s Equity and Multi-Asset Products, said that the company had confirmed Việt Nam’s upgrade in its March review and outlined a roadmap for including Vietnamese equities in the FTSE All-World Index.

He added that Việt Nam’s upgrade could serve as a reference for other frontier markets, while highlighting strong potential for further collaboration in index construction, investment products and benchmarking aligned with international standards.

FTSE Russell noted that its global index system enables investors to access markets through passive funds tracking benchmarks which would help channel additional foreign capital into Việt Nam’s stock market.

At the meeting, both sides discussed measures to facilitate foreign participation, including regulatory improvements, reducing business conditions, simplifying administrative procedures and advancing the rollout of a central counterparty clearing (CCP) mechanism.

They also addressed ways to improve market operations and diversify products

The two sides agreed to strengthen cooperation with a focus on developing internationally aligned products to expand investment opportunities and attract more capital into Việt Nam’s stock market.

The FTSE All-World Index tracks around 4,200 large- and mid-cap stocks across more than 45 countries, representing about 90-95 per cent of the world’s investable market capitalisation. 

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