Discussion Held by VIR to Celebrate Quarter Century of Vietnam's Stock Exchange
In a recent roundtable discussion in Hanoi, Deputy Minister of Finance Nguyen Duc Chi emphasised the urgent need for reforms to upgrade and further improve Vietnam's stock market. The Deputy Minister highlighted the 25-year journey of building and developing the stock market, stating that it has become one of the most important capital mobilization channels for the economy.
The government's coordinated reforms target several key areas to meet international standards and gain an Emerging Market upgrade. These include modernising trading infrastructure, implementing a Central Counterparty Clearing (CCP) mechanism by 2027, enhancing market transparency and regulatory framework, and undertaking comprehensive legal and institutional reforms.
The recent rollout of the KRX trading platform in May 2025 introduced same-day (T+0) settlements, improving transaction efficiency and aligning the market with international standards. The implementation of the CCP mechanism will reduce settlement risks, boost market liquidity, enable cross-market risk control, and improve payment safety. It will also lower margin deposit requirements for investors, making trading more accessible and attractive to institutional participants.
New regulations on margin trading and information disclosure aim to increase transparency and investor confidence, aligning Vietnam’s stock market practices with global norms. A four-phase government plan through 2027 focuses on upgrading the legal framework and establishing a State-owned subsidiary to operate the CCP, ensuring regulatory robustness and market stability.
Upgrading from current Frontier Market status to Emerging Market classification is critical. This will attract a broader spectrum of global institutional investors who currently face investment restrictions, potentially channeling approximately US$5 billion of new foreign capital according to World Bank estimates.
The Deputy Minister raised questions about increasing the participation of institutional investors, enhancing financial literacy among individual investors, and gathering input from market members for further development. The market now has over 10 million accounts held by both domestic and foreign investors.
Following a strong performance in the first half of 2025, Vietnam's stock market is expected to maintain its upward trajectory heading towards the end of the year. The VN-Index has surged, pushing it past 1,500 since late June, making it the highest level among ASEAN markets.
The Deputy Minister outlined three key areas for discussion: improving the legal framework, expanding the supply of high-quality listed companies, and addressing market structure and infrastructure issues. The market's technical infrastructure has been evolving, with the launch of the new KRX IT system and the implementation of updated payment and securities transfer systems.
The Deputy Minister of Finance, Nguyen Duc Chi, emphasised the need for Vietnam's stock market to attract medium- and long-term capital to support large-scale infrastructure projects. Minister of Finance Nguyen Van Thang had a meeting with representatives of FTSE Russell to discuss and assess Vietnam's capital markets for a potential reclassification.
Hoanh suggested that these impressive trading sessions may be driven by new capital inflows from investors. Hoanh emphasised the need for businesses and experts to offer guidance to policymakers to improve market governance transparency, enhance appeal, attract more participants, and position Vietnam's stock market as the leading channel for capital mobilization.
A central counterparty clearing system is upcoming to further enhance market operations. The Deputy Minister called for regulatory bottlenecks to be identified and addressed to support the market's next phase of development. The stock market's upgrade and long-term growth are set by bold policy reforms and a renewed focus on domestic capacity building in Vietnam's pivotal phase of economic transformation.
- The government's reforms in Vietnam's stock market, such as the development of a Central Counterparty Clearing (CCP) mechanism, aim to attract medium- and long-term capital for supporting large-scale infrastructure projects, thereby promoting business growth and investing opportunities in the finance sector.
- The upgrading of Vietnam's stock market from Frontier Market status to Emerging Market classification, expected to attract approximately US$5 billion of new foreign capital, will not only boost technology advancements in the trading infrastructure but also increase transparency, financial literacy, and institutional participation in the investment landscape.
