Gov't approves plan to upgrade securities market
VGP – The Government has approved a plan to upgrade Viet Nam's securities market, setting both short and long-term goals to turn the market into a key channel for mobilizing capital for the economy.
In th near term, the Government targets to upgrade the stock market to secondary emerging market status under FTSE Russell within 2025.
The stock market is expected to meet the criteria for MSCI emerging market designation and to progress further toward advanced emerging market status under FTSE Russell.
To materialize the above targets, one of the immediate priorities is addressing restrictions that have long discouraged foreign participation, such as the requirement for overseas investors to pre-fund securities trades.
The Government requires greater transparency on foreign ownership limits across sectors, ensuring foreign investors' equal access to information.
Administrative procedures for opening trading accounts will be simplified while strengthening information systems between custodial banks and securities companies.
Omnibus trading account (OTA) mechanism will be implemented.
Listed firms and public companies will gradually be required to adopt International Financial Reporting Standards and apply OECD principles of corporate governance.
The plan underscores the need to improve audit quality and supervision capacity within regulatory bodies, equipping the State Securities Commission (SSC) and other agencies with upgraded IT systems, stronger enforcement powers and skilled human resources.
At the same time, new financial products are expected to be introduced, ranging from infrastructure and green bonds to derivatives, structured instruments and foreign exchange hedging tools, providing investors with a broader range of opportunities./.
