FTSE Russell CEO confident in Vietnam's emerging market shift

FTSE Russell CEO confident in Vietnam's emerging market shift

During a meeting with Minister of Finance Ngo Van Tuan on the sidelines of the conference marking Vietnam's inclusion in the FTSE Russell Global Equity Index Series, FTSE Russell CEO Fiona Bassett expressed confidence in Vietnam's transition.

At the meeting on September 18, Minister Tuan, on behalf of the Ministry of Finance (MoF) and the State Securities Commission (SSC), thanked Bassett and her FTSE Russell colleagues for their active support throughout Vietnam's market-upgrade process, particularly during the recent critical stage.

"FTSE Russell's recognition and upgrade of Vietnam's stock market, effective September 21, marks a new milestone in the market's development," Tuan said. He expressed hope that FTSE Russell would continue to support and coordinate with the MoF and relevant agencies, particularly the SSC, to help Vietnam maintain its upgraded status and advance towards a higher classification in the future.

Bassett congratulated Vietnam on its achievements in the country's development, particularly the successful upgrade of its stock market. Affirming FTSE Russell's long-term commitment to Vietnam, she said the organisation would continue to support the country in its development journey and efforts to achieve its economic goals through 2045.

"Vietnam is a very compelling story in Asia," she said. "FTSE Russell hopes to continue contributing to deeper cooperation with Vietnamese regulators and market participants." She expressed her appreciation for the strong and sustained commitment demonstrated by the MoF and the SSC over recent years.

"The market upgrade will improve foreign investors' access to Vietnam's market, enhance transparency, and strengthen investor confidence," Bassett said.

She noted that the achievement reflected substantial efforts and concrete actions by policymakers, regulators, and market participants, adding that FTSE Russell was ready to work with Vietnamese authorities to support the process going forward.

Photo: Manh Tuan

Discussing the foundations for cooperation, Minister Tuan said political, diplomatic, trade, and economic relations between Vietnam and the UK were developing positively. In finance and banking, the UK has a long-established tradition and extensive experience.

Drawing on his experience in the financial sector, the minister said Vietnam had spent many years studying and learning from the UK's experience in developing its financial markets.

Vietnam has set a target for total social investment to reach 40 per cent of GDP in order to achieve its economic development goals, with public investment accounting for 20-22 per cent, while capital mobilised through international capital markets is expected to increase sixfold.

"This is a very ambitious and demanding target. Therefore, the market upgrade plays a crucial role and comes at the right time for Vietnam's development objectives," the minister said.

"Alongside its upgrade to Secondary Emerging Market status, Vietnam is committed to continuing to improve market quality," he explained the need to strengthen governance and market discipline, improve the effectiveness of inspection and supervision, and create the most favourable conditions possible for investors, particularly foreign investors, by improving market access in line with international standards.

Vietnam has also worked closely with a number of international financial organisations, particularly the Organisation for Economic Co-operation and Development, to improve corporate governance, especially among listed companies. Looking ahead, the minister said a key priority would be to continuously improve the legal framework and investment environment.

The Securities Law is currently being amended and supplemented to better reflect market conditions and is expected to be submitted to the National Assembly for approval at its October sitting. The MoF has also instructed the SSC to continue developing the Stock Market Development Strategy for the next 10 years.

Minister Tuan asked FTSE Russell to continue working closely with the SSC and support Vietnam in maintaining and further upgrading its stock market, thereby meeting the country's requirements for attracting investment capital, promoting economic growth, and delivering benefits to investors.

"The principle guiding cooperation between the two sides should be 'win-win', with both parties benefiting," he said.

Bassett fully agreed with this principle and expressed her desire for the two sides to continue developing a long-term strategic partnership aligned with Vietnam's development goals through 2045. "An important element of Vietnam's forward-looking development plan was to combine a clear vision with broad consensus and comprehensive alignment, while actively drawing on international experience," she said.

Bassett also stressed that a deep and efficient capital market would play a key role in mobilising long-term capital for infrastructure, the energy transition, and innovation. As a member of the London Stock Exchange Group, FTSE Russell welcomed the opportunity to support Vietnam in pursuing these strategic priorities through appropriate index solutions, she said.

VIR