Vietnam Stock Market Elevated to Secondary Emerging Status: Milestone for Comprehensive Transformation

FTSE Russell officially upgraded Vietnam’s stock market from the “frontier market” category to secondary emerging market status. Commenting on this milestone, Minister of Finance Nguyen Van Thang said: “Over the past two years, under the strong leadership of General Secretary To Lam, the Government and Prime Minister, and with close direction from the Ministry of Finance, the State Securities Commission has carried out a comprehensive reform program to align Vietnam’s stock market with the highest international standards.”

According to Minister Nguyen Van Thang, FTSE Russell’s official recognition and upgrade reflect the Government’s sound policies and strong determination, the close coordination of the State Bank and ministries, the active participation of market members, and the valuable support of the World Bank, FTSE experts, and global investment institutions. He praised the State Securities Commission, stock exchanges, and the Vietnam Securities Depository and Clearing Corporation (VSDC) for their consistent and dedicated efforts.

“This upgrade marks a significant milestone in more than 25 years of market development. FTSE’s decision not only opens up major opportunities to attract foreign investment but also affirms that Vietnam’s development path and integration into the global financial system are moving in the right direction,” he emphasized.

Upgrade is a journey, not a destination

Regarding the market’s direction following the upgrade, Minister Nguyen Van Thang said: “The upgrade is not the final destination but part of an ongoing journey to build a higher-quality, more transparent, and sustainable stock market. FTSE’s announcement today represents only an initial achievement; we still have greater goals ahead and must pursue more decisive and consistent reforms.”

He added that this upgrade results from reforms across legal frameworks, market infrastructure, product and service quality, and investor behavior, representing a complete transformation in quality and integration. In the Vietnam Stock Market Upgrade Plan, the goal is not only to maintain the “secondary emerging market” status under FTSE Russell but also to meet Morgan Stanley Capital International (MSCI) criteria and advance to the “advanced emerging market” group by 2030.

“The Vietnamese capital and stock markets will undergo qualitative transformation. While attracting higher-quality foreign capital, the market will also require higher standards of corporate governance and transparency. This will drive regulators, enterprises, and investors to raise their standards and make stronger contributions to the economy,” he said.

Stock market - core capital mobilization channel

On the market’s future direction, Minister Nguyen Van Thang emphasized: “The 2030 Stock Market Development Strategy clearly sets the goal of developing a stable, safe, healthy, efficient, sustainable, and internationally integrated stock market; making it the main medium- and long-term capital mobilization channel for the economy; while fostering green finance, sustainable finance, and digital transformation.”

The Ministry of Finance will instruct the State Securities Commission and relevant agencies to further improve the legal framework, accelerate the modernization and digitalization of market infrastructure, enhance convenience for both domestic and foreign investors, and develop a transparent, efficient, and modern stock market aligned with leading international standards.

“The Ministry of Finance looks forward to continued leadership support from the Party and State, effective coordination from ministries, international organizations, and market participants, so that Vietnam’s stock market not only maintains its newly upgraded status but also progresses toward higher standards, becoming a key capital mobilization channel for economic development in the new era,” Minister Nguyen Van Thang said.

By Huong Hau, Vietnam Business Forum