Infrastructure determines the ability to retain capital.
According to Mr. Vu Chi Dung, Head of the Legal and External Affairs Department (State Securities Commission - SSC), the Vietnamese stock market currently has over 300 listed stocks, over 800 stocks registered for trading on UPCoM, a market capitalization of nearly 80% of GDP, and nearly 14 million trading accounts.
Following a review process for potential upgrade since 2016, Vietnam was placed on FTSE Russell's watchlist in 2018. Subsequent reforms focused on removing barriers for international investors, particularly the 2024 Circular 68 which abolished the 100% pre-transaction margin requirement for foreign institutional investors.
Along with the launch of the new trading system, enhanced information transparency, and improved infrastructure connectivity, FTSE officially announced on September 18th the inclusion of Vietnamese stocks in the FTSE Emerging Market Index.
According to Mr. Dung, the upgrade is just the starting point for a deeper integration process. The next focus is maintaining FTSE's secondary emerging market status, aiming towards MSCI, perfecting payment infrastructure, improving access for foreign investors, and enhancing corporate governance quality.