BSC Securities believes that the Vietnamese stock market may be considered by MSCI to be included in the Watch list to be upgraded to an emerging market in the near future, in June 2025.
According to the newly released global market access report, MSCI's assessment of Vietnam's "transferability" criterion has been changed from needing improvement "-" to no major problems "+".
Vietnam has seen improvements in transferability thanks to increased off-exchange trading and physical transfers that can be made without prior regulatory approval.
In addition, Vietnam continues to work on market development with plans to address some accessibility issues, such as foreign ownership limits, pre-funding requirements and the lack of English-language market disclosure. MSCI will continue to closely monitor the progress of these reforms.
However, Vietnam still has 8 criteria that need improvement including: (1) foreign ownership limit, (2) foreign block room, (3) equal rights for foreign investors, (4) freedom of the foreign exchange market, (5) investor registration & account establishment, (6) market regulations, (7) information flow and clearing.
In fact, Vietnam does not need to immediately improve all 8 missing criteria to be considered for upgrading to an emerging market. Resolving the pre-funding issue, moving towards early operation of the new trading system, implementing a roadmap for information disclosure in English, etc. will be positive points in MSCI and FTSE's assessment of Vietnam in the coming time.
In the report on “Evaluation of some contents related to the process of upgrading the Vietnamese stock market”, BSC highly appreciated the efforts of the management agency in standardizing the system as well as aiming to resolve the remaining bottlenecks towards the goal of upgrading the Vietnamese stock market by 2025.
On April 26, the State Securities Commission (SSC) sought comments on the draft Decision promulgating the Regulations on the use of the Information Disclosure System. Accordingly, the SSC will implement a single-point information disclosure report for organizations listed and registered for trading on the Hanoi Stock Exchange and organizations listed on the Ho Chi Minh City Stock Exchange.
Previously, on March 20, the State Securities Commission also sought opinions from units, organizations and individuals on the draft Circular amending and supplementing a number of articles of the circulars regulating securities transactions on the securities trading system; clearing and settlement of securities transactions; operations of securities companies (SCs) and information disclosure on the stock market (TTCK).
BSC Securities believes that the Vietnamese stock market may be considered by MSCI to be included in the Watch list to be upgraded to an emerging market in the near future, in June 2025.
Source: CafeF
