Vietnam's Stock Market Strengthens Ties with FTSE Russell for Enhanced Global Competitiveness

Vietnam's Ministry of Finance is strengthening cooperation with FTSE Russell to enhance the depth, liquidity, and international capital attraction capabilities of its stock market. This intensified collaboration comes as Vietnam's stock market is set for official inclusion in the FTSE Global Equity Index on September 21, 2026, a significant milestone aimed at bolstering its position on the global stage. During a meeting in Hanoi on September 18, Minister of Finance Ngo Van Tuan met with Fiona Bassett, CEO of FTSE Russell, and her delegation. Minister Tuan expressed gratitude for FTSE Russell's consistent support in upgrading Vietnam's stock market, highlighting the upcoming inclusion as a pivotal moment that will usher in a new phase of development for the market. Vietnam has set ambitious economic goals, aiming to become a country with modern industry and high average income by 2030, and a developed, high-income nation by 2045. Achieving these targets necessitates substantial capital mobilization, with a growing emphasis on fundraising from international capital markets. The stock market's reclassification is considered timely and crucial for enhancing its capacity to attract capital to support economic growth. To improve market quality, Vietnam is committed to strengthening corporate governance, enforcing market discipline, enhancing execution efficiency, improving market access, particularly for foreign investors, and refining its legal framework to develop new models and products aligned with international trends. The country is also collaborating with international organizations like the OECD to elevate corporate governance standards for listed companies, thereby increasing transparency, bolstering investor confidence, and fostering sustainable market development. FTSE Russell views Vietnam as a long-term strategic partner and is prepared to continue its collaboration. The firm proposed a two-phase approach: first, focusing on developing index products for the Vietnamese market, serving both domestic and international investors. Second, it aims to develop risk management tools, contributing to a more professional and deeper market. Specifically, they suggested working with Vietnamese authorities to improve liquidity for derivative products based on the FTSE Vietnam Index listed abroad, aiming to create hedging tools for international investors, facilitate price discovery, connect two-way liquidity, and expand foreign capital participation. Minister Tuan highly appreciated FTSE Russell's proposals and instructed the State Securities Commission and relevant agencies to continue discussions with market participants to promptly resolve difficulties. He also emphasized strengthening cooperation with reputable international organizations to refine the legal framework and market management practices. Moving forward, the Ministry of Finance will prioritize legal framework refinement and investment environment improvement, addressing challenges to increase market openness, accessibility, and liquidity, modernizing trading systems and technological infrastructure, diversifying products to meet risk management needs, and enhancing supervision and enforcement to protect investors' legitimate rights and interests. Both parties agreed to further develop their cooperative relationship based on mutual benefit, linking the enhancement of Vietnam's stock market quality with the objective of attracting long-term capital, supporting economic growth, and delivering sustainable returns for investors. Immediately after the meeting, the Minister, the FTSE Russell delegation, and other participants attended the Vietnam Officially Joins FTSE GEIS Emerging Market Index conference held in Hanoi. Source: Nhan Dan