FTSE Russell has just released a market classification report, keeping Vietnam on the watchlist for upgrading from Frontier Markets to Secondary Emerging Markets. Vietnam has been on the watchlist for upgrading since September 2018.
Accordingly, FTSE Russell maintains the assessment of the “Delivery Cycle (DvP)” criteria, the new account registration process as well as the facilitation of trading activities between foreign investors for stocks that have run out of room.
Also in the announcement, FTSE appreciated the Prime Minister's efforts to upgrade the market. Specifically, on February 28, the Prime Minister made commitments to remove barriers that could prevent Vietnam from meeting the FTSE Emerging Market Classification criteria by 2025. This list includes amending relevant legal regulations and creating more favorable conditions, as well as removing barriers for foreign investors in accessing the market. Examples include reviewing the current FOL mechanism and simplifying the process of opening accounts for foreign investors.
The SSC and relevant agencies are finalizing a new payment model. FTSE encourages meetings between Vietnamese organizations and the international community to better understand the difficulties in accessing the Vietnamese stock market.
Source: FTSE Russell
FTSE also emphasized that to achieve the target of upgrading by 2025, Vietnam must soon confirm and widely disseminate the new payment model, including completing the necessary roles and responsibilities in the payment model. Along with that, Vietnam must provide a roadmap, with specific important milestones.
Source: Investing
