Vietnam set to upgrade stock market
15 September 2025 Vietnam
Image: Parilov/stock.adobe.com
Vietnam’s Deputy Prime Minister, Ho Duc Phoc, has approved plans to upgrade the country’s stock market.
Under the new project, the stock market will be developed into an important medium and long-term capital mobilisation channel for economic development, and will enhance regional and international economic integration.
A key aim from the government will see the stock market meet the criteria for MSCI emerging market designation, and to progress further toward advanced emerging market status under FTSE Russell.
To achieve these targets, the government will address restrictions which have long discouraged foreign participation, such as the requirement for overseas investors to pre-fund securities trades.
According to the government, Vietnam will develop an advanced payment and clearing infrastructure to meet the 100 per cent margin-free transaction payment mechanism, and the central clearing counterparty (CCP) mechanism.
The country currently has plans underway to introduce a CCP by 31 December 2027.
The stock market project will welcome a roadmap to enable securities borrowing and lending; controlled short selling through the mechanism of selling pending securities; and intraday trading.
Further plans include the move to modernise the trading system and securities transaction payment system on the stock market, enhancing the capacity of the trading system to meet large transaction volumes.
Vietnam requires greater transparency on foreign ownership limits across sectors, ensuring foreign investors' equal access to information.
In addition, administrative procedures for opening trading accounts will be simplified while strengthening information systems between custodial banks and securities companies.
Under the new project, the stock market will be developed into an important medium and long-term capital mobilisation channel for economic development, and will enhance regional and international economic integration.
A key aim from the government will see the stock market meet the criteria for MSCI emerging market designation, and to progress further toward advanced emerging market status under FTSE Russell.
To achieve these targets, the government will address restrictions which have long discouraged foreign participation, such as the requirement for overseas investors to pre-fund securities trades.
According to the government, Vietnam will develop an advanced payment and clearing infrastructure to meet the 100 per cent margin-free transaction payment mechanism, and the central clearing counterparty (CCP) mechanism.
The country currently has plans underway to introduce a CCP by 31 December 2027.
The stock market project will welcome a roadmap to enable securities borrowing and lending; controlled short selling through the mechanism of selling pending securities; and intraday trading.
Further plans include the move to modernise the trading system and securities transaction payment system on the stock market, enhancing the capacity of the trading system to meet large transaction volumes.
Vietnam requires greater transparency on foreign ownership limits across sectors, ensuring foreign investors' equal access to information.
In addition, administrative procedures for opening trading accounts will be simplified while strengthening information systems between custodial banks and securities companies.
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