Moves afoot to secure stock market upgrade in 2025
The roadmap for Vietnam’s stock market to be upgraded to Emerging Market status by 2025 is based on London’s Financial Times Stock Exchange (FTSE)’s nine classification criteria, of which the country has currently met seven. The remaining two to be met are: Investors need money before placing an order, and costs related to failed transactions cannot be assessed before a failed transaction has occurred; and Investors need money in their account before placing a trading order. The two main groups of issues in Vietnam include pre-transaction deposit requirements (pre-funding), and foreign ownership limits. Both of these are in the final stages of completion but still need practical coordination from relevant agencies and ministries to fully resolve. With major effort and determination from the government, ministries, and branches, Vietnam’s stock market is expected to receive its upgrade by 2025, as targeted.