On September 12, the Government of Vietnam issued Decision 2014/QD-TTg, approving the national plan to upgrade the domestic stock market. In the short term, the plan targets meeting all criteria for stock market’s designation to be upgraded from “frontier” to “secondary emerging market” status under FTSE Russell by 2025. Its long-term goal, by 2030, is to achieve emerging market status with MSCI and higher FTSE Russell tiers.
Key reforms under this plan include removing pre-funding for foreign investors, improving transparency on ownership limits, simplifying account procedures, implementing a central counterparty clearing system, diversifying investment products, and strengthening corporate governance through IFRS and OECD standards.
Vietnam’s stock market includes approximately 1,600 listed companies and has shown strong momentum, with the VN-Index rising 32.8% year-to-date as of August 2025. Market capitalization reached a record USD 352 billion, or 73.9% of 2024 GDP, with average daily trading around USD 1.5 billion. FTSE Russell is set to announce the outcome of its classification review after the U.S. market closes on October 7. If approved, Vietnam will join the FTSE Secondary Emerging Market Index in March 2026. The upgrade is forecasted to attract an additional USD 5–7 billion in foreign capital in the short term.
Vietnam is actively implementing its stock market upgrade plan through several legal and regulatory reforms including:
- Decree 245/2025/ND-CP (issued September 11 by the Government of Vietnam): Amends and supplements key provisions of the Securities Law, with several reforms that directly address criteria for an upgrade by FTSE Russell and MSCI, including streamlined procedures for foreign investors to open indirect investment any payment accounts, the removal of foreign ownership limits below legal or international commitments, and mandatory English disclosures, among others.
- Decision 709/QD-UBCK (issued on September 27 by the State Securities Commission): streamlines IPO and listing reviews by coordinating SSC and Ho Chi Minh City Stock Exchange divisions, eliminating overlapping procedures, significantly shortening post-IPO listing time, and enhancing transparency and standardization of IPOs.
- Circular 25/2025/TT-NHNN (issued September 8 by the State Bank of Vietnam): Amends Circular 17/2024/TT-NHNN with changes aimed at simplifying procedures for non-resident foreign investors taking part in indirect investments in Vietnam. Key reforms include streamlined account opening, allowing banks to manage accounts without consular legalization, removing verification of ID documents, signatures, stamps, and eliminating mandatory biometric checks.
The stock market upgrade is more than a technical reclassification for Vietnam, it also carries strategic significance for Vietnam’s international economic integration, making its capital market more accessible to wider range of international investors and major issuers, and enhancing the appeal of Vietnam’s equities market as a long-term investment destination.
