JICA congratulates Vietnam on FTSE Russell market upgrade

JICA congratulates Vietnam on FTSE Russell market upgrade

The Japan International Cooperation Agency has congratulated Vietnam on its reclassification from Frontier Market to Secondary Emerging Market status by FTSE Russell.

Ceremony marking Vietnam's inclusion in FTSE Russell Global Equity Index Series. Photo: Manh Tuan

In a message released on September 19, the Japan International Cooperation Agency (JICA) said the milestone, effective September 21, reflects years of market reforms undertaken by the Vietnamese government, the Ministry of Finance, and the State Securities Commission (SSC) to enhance transparency and market accessibility.

Since the resumption of Japanese official development assistance in 1992, JICA has supported Vietnam’s capital market through policy dialogue, technical cooperation, research, and long-term training. Over nearly 25 years, JICA-supported training programmes have helped strengthen the capacity of Vietnamese regulators and market practitioners, many of whom now hold key positions at the SSC and stock exchanges.

A major milestone in this partnership was the Technical Cooperation Project for Capacity Building on Improving Fairness and Transparency of the Vietnamese Equity Market (2019-2023). The project strengthened market surveillance, disclosure standards, market transparency and investor protection, while also supporting the implementation of the 2019 Securities Law, all of which are important foundations for international investor confidence and market accessibility.

At the project closing seminar in 2023, JICA reaffirmed to keep supporting SSC, stock exchanges and relevant stakeholders through technical cooperation for further promotion of fairness, transparency and efficiency of Vietnam’s securities market in the new development cooperation era. Building on these achievements, JICA and SSC are implementing a follow-on project (2024-2027) focused on promoting market efficiency, risk-based supervision and stronger enforcement.

Kobayashi Yosuke, chief representative of JICA Vietnam, said, “Vietnam’s FTSE upgrade is the result of sustained reform efforts and strong cooperation among many stakeholders. JICA is honoured to have worked alongside Vietnam in strengthening regulatory capacity, investor protection and market transparency.”

Kojima Kazunobu, JICA project chief expert from Daiwa Research Institute, said, “Vietnam’s securities market has made remarkable progress over the years. Looking ahead, continued reforms under the government’s strong leadership are expected to help drive sustainable market growth and closer alignment with international standards.”

The FTSE upgrade is expected to improve market visibility, attract international investment and create new opportunities for Vietnamese enterprises. JICA remains committed to supporting Vietnam’s financial sector development and deeper integration into regional and global markets.

FTSE Russell is a global index provider owned by the London Stock Exchange Group, known for benchmarks such as the FTSE 100 and global equity indices. It classifies stock markets based on market quality, accessibility, liquidity, and regulatory standards.

FTSE Russell's market ranking system has four main levels: Developed, Advanced Emerging, Secondary Emerging, and Frontier. A higher classification generally indicates a more mature, accessible, and investable market for international investors. Countries often seek upgrades in FTSE Russell rankings because they can entice more foreign investment and increase market visibility.

VIR