Hanoi (VNA) – Vietnam is stepping up efforts to build a stronger, safer and more transparent capital market, with stock market reforms expected to attract more foreign investment and support long-term economic growth.
The country's ambition is clearly set out in the Politburo's Resolution No. 10-NQ/TW on developing the foreign-invested sector, which targets an upgrade of Vietnam's stock market to Morgan Stanley Capital International (MSCI) Emerging Market status before 2030.
The goal marks a new stage in Vietnam's capital market development, positioning the stock market as a major channel for mobilising long-term funds for businesses and the economy.
According to the State Securities Commission (SSC), many targets under the national stock market development strategy have already been achieved or are close to be met.
By the end of May 2026, Vietnam had more than 13 million securities trading accounts, well above the strategy's target of 11 million by 2030. Individual domestic investors remain the driving force, with stock market participation now accounting for more than 13% of the country's population.
The stock market's total capitalisation has reached over 10.6 quadrillion VND (about 403 billion USD), while market liquidity remains among the highest in ASEAN. The bond and derivatives markets have also continued to expand steadily.
A major milestone came when FTSE Russell confirmed that Vietnam would be upgraded from a Frontier Market to a Secondary Emerging Market in September 2026 after several years on its watch list.
Vietnamese stocks are expected to be gradually added to FTSE indices over the following 12 months.
Deputy Minister of Finance Nguyen Duc Chi said the next objective is securing an upgrade under the more demanding MSCI classification system.
Unlike FTSE, MSCI places greater emphasis on foreign investors' access to the market. Meeting its requirements will require deeper reforms, including improvements to trading infrastructure, foreign exchange regulations and foreign ownership limits. Vietnam is accelerating these reforms to align with international standards, he said.
SSC Vice Chairman Bui Hoang Hai said the commission is preparing amendments to the Securities Law, focusing on three key areas.
The proposed revisions aim to simplify business and investment procedures, establish legal foundations for new financial market models in line with global trends, and update regulations governing electronic trading, securities firms and investment funds.
At the same time, regulators are working to improve the quality of listed companies, strengthen market supervision, maintain stable market operations and crack down on violations.
The amended Securities Law is scheduled to be submitted to the National Assembly for consideration in October 2026, with preparations progressing on schedule.
Resolution No. 10 also lays out broad measures to attract greater foreign portfolio investment, alongside continued efforts to draw high-quality foreign direct investment (FDI).
The resolution calls for further development of the stock and bond markets, stronger financial intermediaries and faster implementation of reforms needed for international market upgrades.
In a recent report, Mirae Asset Securities said Resolution No. 10 represents the first time Vietnam has combined the goals of attracting next-generation FDI with encouraging greater foreign indirect investment while explicitly targeting an MSCI market upgrade.
The company said the strategy would help transform Vietnam from a manufacturing destination into a market where foreign companies can also raise capital, broaden their shareholder base and expand long-term operations.
Dominic Scriven, Chairman of Dragon Capital, has suggested measures to encourage multinational companies to retain more profits in Vietnam rather than transferring them overseas. He also proposed easing foreign ownership limits in sectors that are not related to national security and further developing domestic institutional investors to provide a stronger foundation for sustainable market growth.
Michael Kokalari, Chief Economist at VinaCapital, said many global investment funds managing hundreds of billions of US dollars are closely watching Vietnam and stand ready to increase investment as reforms advance.
To capture these inflows, he said Vietnam should work towards obtaining an investment-grade sovereign credit rating from international agencies such as S&P Global Ratings, Moody's Ratings or Fitch Ratings. He also called for the early launch of the country's International Financial Centre and faster equitisation of state-owned enterprises, together with more initial public offerings, to expand the size and quality of Vietnam's capital market and make it more attractive to international investors./.
VNa
