Prime Minister demands improvements in stock market following FTSE Russell's update announcement

In an official telegram on Wednesday, the Prime Minister tasked the State Bank of Viet Nam (SBV) to coordinate with the Ministry of Finance, the State Securities Commission of Viet Nam, and relevant agencies to promptly finalize the legal framework and technical infrastructure to implement the central counterparty clearing (CCP) mechanism in early 2027.

On October 8, index provider FTSE Russell upgraded Viet Nam's stock market to secondary emerging status, paving the way for the Southeast Asian nation to integrate deeply into the global financial system.

The upgrade is expected to take effect on September 21, 2026, subject to an interim assessment in March 2026 to confirm Viet Nam’s progress in improving market access through global brokers.

The market upgrade marks one of the most significant milestones in the 25-year development journey of Viet Nam's stock market, creating major opportunities for the country to attract foreign capital and further integrate into the global financial system.

Prime Minister Pham requested the Ministry of Finance to work with relevant agencies to promote coordination with the FTSE Russell to ensure that the official reclassification process proceeds according to schedule.

The ministry should also coordinate SBV and other ministries and sectors to implement comprehensive measures that maximize convenience for both domestic and foreign investors in accessing the market.

In addition, the ministry must improve the legal framework, reform administrative procedures, modernize and digitalize market infrastructure, enhance corporate governance quality, strengthen supervision, and ensure security, safety, and stability of the market.

The SBV needs to join hands with other ministries and agencies to ensure the safe and seamless operation of clearing and settlement activities in securities transactions as well as study and implement foreign exchange risk-hedging products for foreign investors to mitigate the impact of exchange rate fluctuations.

In the first nine months of 2025, Viet Nam's stock market demonstrated strong internal momentum, with a surge in liquidity. The VN-Index rose from 1,100 points in April to nearly 1,700 points (a more than 50 percent increase), with daily trading values reaching US$2-3 billion, among the highest in Southeast Asia. This reflects robust capital flows from both individual and institutional investors, contributing to overall economic growth./.