Finance Ministry Leader Delivers Crucial Statement Ahead of Stock Market Upgrade Review

At the Q3 regular press conference of the Ministry of Finance, Deputy Minister Nguyen Duc Chi announced that Vietnam has been implementing comprehensive measures to develop its stock market sustainably, stably, and transparently. This is a critical requirement for executing the approved capital market and securities market development strategy.

According to the Ministry of Finance’s leadership, the legal framework for the securities market has progressively improved, laying a solid foundation for sustainable growth. Market governance, organization, and oversight have been rigorously executed in collaboration with international organizations.

The Ministry of Finance and the State Securities Commission have proactively engaged with international bodies, providing information and evidence to ensure objective and transparent evaluations of Vietnam’s market.

Deputy Minister Nguyen Duc Chi emphasized that while the final decision rests with international organizations, Vietnam will continue to collaborate closely to build trust and advance the market upgrade process.

“Upgrading is not a one-time goal but an ongoing process that requires long-term commitment. The ultimate objective is to foster a stable, transparent securities market that effectively supports the economy, businesses, and long-term capital markets,” Chi stressed.

Recently, multiple initiatives have been launched to meet upgrade criteria and facilitate foreign investor participation. In the March assessment, Vietnam met 7 out of 9 required criteria. However, to achieve a market upgrade, Vietnam must satisfy 9 mandatory criteria and 2 non-mandatory reference criteria. Regulatory authorities have addressed the remaining criteria in recent months.

Specifically, the Ministry of Finance issued Circular 68, adding provisions for foreign institutional investors to place stock purchase orders without requiring full payment at the time of order placement.

The Government enacted Decree 245, amending certain provisions of the Securities Law. This decree eliminates the ability of shareholder meetings and public company charters to set foreign ownership limits below those stipulated by law and international commitments, thereby enhancing market accessibility for foreign investors.

The State Bank of Vietnam also issued Circular 25, amending Article 6 and related provisions of Circular 17. These changes streamline the opening and use of payment accounts for non-resident foreign investors engaging in indirect investment activities in Vietnam.

The circular took effect immediately upon signing on August 31, demonstrating Vietnam’s determination to swiftly address bottlenecks and create a more transparent legal framework for the securities market.

In a recent assessment, Vietcap Securities expressed confidence that FTSE Russell will announce a positive outcome for Vietnam on October 8. If Vietnam is upgraded, approximately 30 stocks will be added to index fund portfolios, potentially attracting at least $1 billion from passive funds during implementation.

FTSE Russell evaluates eligible stocks based on criteria such as minimum foreign ownership ratios, market capitalization, liquidity, and free float (reviewed quarterly; any violations may result in index exclusion).