FTSE upgrade paves way for stronger stock market development

FTSE upgrade paves way for stronger stock market development

Vietnam will accelerate efforts to sustain economic growth and develop its stock market following its reclassification as a secondary emerging market by FTSE Russell, Deputy Minister of Finance Nguyen Duc Chi has said.

Photo: Manh Tuan

Speaking at the government's regular press conference for September on October 3, Chi said, "The upgrade had been recognised by international financial institutions and would bring benefits to the market in both the short and long term."

To maintain its new status and progress towards higher classifications, the Ministry of Finance (MoF) has identified four priority areas: improving the regulatory framework, expanding market supply, strengthening investment demand, and modernising market supervision.

The government plans to submit amendments to the Securities Law to the National Assembly for consideration during its October 2026 session. The revisions are intended to address the market’s needs following the upgrade, keep pace with technological advances, and facilitate the application of AI and digital transformation. The MoF is also considering regulatory sandboxes for the securities market.

On market supply, the ministry has submitted proposals to the government on linking initial public offerings with stock exchange listings to make it easier for businesses to raise capital through the stock market.

Measures are also being developed to encourage large companies with sound corporate governance, as well as foreign-invested enterprises, to list their shares. Amendments to the Investment Law are expected to clarify foreign investors’ ownership limits in businesses, including listed companies, the MoF leader said.

The MoF is also working on measures to develop the corporate bond market, covering both public offerings and private placements, while diversifying financial products such as green bonds and derivatives. Incentives are being considered to encourage green bond issuance.

On the demand side, the ministry aims to increase the participation of institutional investors to strengthen market stability and support sustainable development. It is working with the State Bank of Vietnam and other ministries and agencies to simplify administrative procedures for foreign investors and improve access to the market.

The ministry is also continuing to develop a central counterparty clearing mechanism and preparing a programme to improve domestic investors’ financial knowledge and investment capabilities.

The fourth priority is to modernise market management and supervision, improve transparency, detect and strictly handle violations, and protect the legitimate rights and interests of all market participants.

Deputy Minister of Finance Nguyen Duc Chi. Photo: Manh Tuan

Vietnam’s GDP grew by an estimated 9.95 per cent on-year in the third quarter of 2026 and just over 9 per cent in the first nine months, many economic sectors had recorded strong growth.

The government remains committed to achieving double-digit economic growth in 2026. Prime minister has instructed ministries, local authorities, and businesses to implement growth measures decisively and effectively in the final three months of the year to fulfil their annual targets and help the economy meet its goal.

Deputy Minister Chi stressed the need for proactive and flexible economic management, with close coordination between monetary, fiscal, and other macroeconomic policies to control inflation.

"Authorities must regularly assess the balance between price stability and growth support," he said. “We must absolutely ensure that the economy does not face shortages of electricity or petroleum products.”

The government will also continue to improve the institutional framework, enhance the investment climate, remove existing obstacles, prevent new delays, and reduce administrative procedures and business conditions.

During the October session, the government plans to submit several laws and amendments to the National Assembly, including legislation on corporate income tax, personal income tax, non-agricultural land use tax, and securities, with the aim of further simplifying procedures and expanding incentives.

Public investment remains a key driver of growth. The government aims to disburse all the allocated public investment plan and complete major projects scheduled for 2026. Capital will be withdrawn from ministries and localities with slow disbursement and redirected to projects with stronger implementation capacity and the ability to absorb funding.

The government will also seek to reduce input costs, encourage private investment, and accelerate the resolution and implementation of stalled projects.

"Obstacles had been resolved for around 1,000 previously stalled projects. The government has instructed ministries, agencies, and local authorities to move these projects into on-site implementation, with the aim of generating a significant boost to economic growth," said Chi.

State-owned groups and corporations are also expected to fulfil the business and production plans established at the beginning of the year.

In science and technology, innovation, and digital transformation, the government will implement its 100-day action plan and seek to disburse all allocated state budget funding for these areas in the remaining months of the year.

“The MoF is closely monitoring developments and advising the government on scenarios and measures to achieve the target of double-digit GDP growth in 2026,” added Chi.

VIR