Mr. Bui Hoang Hai shares insights at the forum
|
Exceptionally Successful Work Trip
Following the Ministry of Finance’s mission to promote both direct and indirect investment in major markets such as London (UK) and Milan (Italy), Mr. Bui Hoang Hai, Vice Chairman of the State Securities Commission (SSC), shared detailed insights.
Providing updates on the trip, Mr. Hai described it as an exceptionally successful mission, unprecedented in scale. The delegation, led by Minister of Finance Nguyen Van Thang, organized an investment promotion forum in Vietnam, attracting nearly 200 investors, mostly representing top global asset management firms with an estimated combined portfolio of approximately 16,000 billion USD. Beyond the forum, foreign investors held nearly 100 direct meetings with Vietnamese businesses, highlighting significant global interest.
“Vietnam’s stock market has never received such high attention,” Mr. Hai noted.
During meetings with the London Stock Exchange (LSE) and FTSE Russell, the direct involvement of the Minister of Finance demonstrated strong political commitment. Both FTSE and LSE praised this effort, stating that no other country has had its highest government officials, Ministry of Finance, and market regulators directly engaged in reforms to maximize ease for foreign investors. Over the past year, the Government, Ministry of Finance, and SSC have fulfilled all commitments on schedule, with a clear roadmap and high political determination. This has bolstered FTSE and LSE’s confidence in Vietnam’s financial market reforms.
Market Upgrade Not the Ultimate Goal
When asked about the implications if Vietnam’s market is not upgraded in October, SSC leadership emphasized that the upgrade is merely a milestone in the long-term journey to build an efficient stock market contributing more to economic development. Recent reforms aim not only to achieve an upgrade but also to facilitate greater international capital access to Vietnam’s market.
“Market upgrading is not the ultimate goal; the highest objective is to enhance the stock market’s efficiency in capital allocation and mobilization,” Mr. Hai stressed. He added that the upgrade goal was outlined in the 2019 stock market development plan approved by the Prime Minister and is one of many targets for building a sustainable market.
Mr. Bui Hoang Hai: Market upgrading is not the ultimate goal; the highest objective is to enhance the stock market’s efficiency in capital allocation and mobilization
|
The Ministry of Finance, SSC, and the Government have issued numerous resolutions, decisions, and policies to develop the market.
Regarding foreign investor facilitation, Vietnam maintains transparency and clarity in its plans. For instance, the stock market restructuring plan, market upgrade plan, and institutional investor development plan all have detailed roadmaps.
One key focus for foreign investors is implementing a central counterparty clearing mechanism (CCP) to prevent transaction cancellations, ensuring stability and risk control for both the stock market and the financial system. With legal frameworks and infrastructure (KRX) in place, the remaining steps involve establishing a subsidiary of the Vietnam Securities Depository and Clearing Corporation (VSDC), along with personnel and capital, to operationalize the CCP.
Another initiative is the investor restructuring and fund industry development plan, aimed at increasing the proportion of institutional investors. A higher institutional investor ratio reduces market volatility, lowers risk perception among foreign investors, and decreases capital costs for the economy. Additionally, new indices will be introduced to encourage diverse fund development, catering to varied investor needs.
Ample Products, but Diversification Needed
Addressing concerns about product scarcity in Vietnam’s stock market, SSC leadership expressed a nuanced view: “Partially agree, but also partially disagree.”
Currently, the equity market boasts over 1,600 listed and registered companies, alongside approximately 500 government bond codes and over 1,000 corporate bond codes, indicating a substantial volume.
However, product structure remains undiversified. Despite 25 years of growth, the market’s achievements in capitalization and liquidity pale compared to regional peers. To address this, the Ministry of Finance and SSC are implementing plans to diversify products.
For traditional products like equities, Decree 245 has integrated IPO and listing processes, incentivizing more companies to consider IPOs. Recently, Technocom Securities (TCBS) saw its IPO oversubscribed by 2.5 times, showcasing significant potential.
In the bond market, regulators plan to amend legal frameworks to introduce new bond types, including infrastructure bonds, PPP corporate bonds, green bonds, and ESG bonds.
For fund products, the recently approved fund development plan by Deputy Minister of Finance Nguyen Duc Chi involves the Vietnam Stock Exchange (VNX), Hanoi Stock Exchange (HNX), and Ho Chi Minh City Stock Exchange (HOSE) establishing new index regulations. This allows flexible development of indices based on fund manager proposals.
Recently, VNX signed an MoU with FTSE to create additional benchmark indices. Upcoming Circular 98 will enable new fund types, such as ETFs, infrastructure bond funds, and money market funds, vital for sustainable fund industry growth.
In the derivatives market, limited products contrast with the need for risk management tools amid market upgrades and investor protection. Developing derivatives for exchange rates and interest rates is essential for advancing toward FTSE Advanced Emerging and MSCI Emerging Market status.
Mr. Hai emphasized that product diversification increases investor risk complexity. Therefore, enhancing financial advisor training, education, and professional development is crucial to equip investors with knowledge for effective participation.
– 11:33 26/09/2025
Surprising Revelations About the Assets of Mr. Pham Nhat Vuong’s Wife
Phạm Thu Hương, wife of Phạm Nhật Vượng, has made significant strides in her wealth accumulation. Holding over 170 million shares of VIC, she now boasts a net worth of nearly 27 trillion VND, officially crossing the “billion-dollar” threshold based on the listed stock value in Vietnam.
Confident Stock Upgrades: Billion-Dollar Foreign Funds Highlight Top Picks for the Next Wave
Pyn Elite Fund anticipates that FTSE Russell will upgrade Vietnam’s market status to Emerging Market (EM) as early as October or by March 2026 at the latest.
Stock Market Week 22-26/09/2025: Foreign Investor Hurdles
The VN-Index paused its recovery in the final session of the week as buying momentum failed to sustain the upward trend. Liquidity remained subdued, while persistent net selling pressure from foreign investors continued to pose a significant challenge to market resilience.
SSI Launches Share Offering to Raise Capital to Nearly VND 25,000 Billion, Margin Demand Surges 30-40% Yet Remains Manageable
On the afternoon of September 25th, SSI Securities Corporation (HOSE: SSI) held an extraordinary shareholders’ meeting in 2025, approving a plan to issue additional shares to existing shareholders. The proceeds from this offering will be allocated to enhance margin lending capital and invest in bonds, deposit certificates, and other securities as determined by the Board of Directors.
Elevating Market Status: Vietnam’s Blue-Chip Stocks Step onto the Global Stage
The race to upgrade Vietnam’s stock market has entered a critical phase. Beyond attracting foreign capital, what the market truly needs is a new governance standard—a foundation for Vietnam’s blue-chip companies to compete on the global stage.
