Vietnam is on track to upgrade its stock market from frontier to secondary emerging status by 2025, after implementing reforms to attract foreign investment and meet international standards, with support from the London Stock Exchange and FTSE Russell.
Vietnam has taken significant steps toward upgrading its stock market status from “frontier” to “secondary emerging” as classified by FTSE Russell, driven by comprehensive reforms aimed at encouraging foreign investment inflows. According to Finance Minister Nguyen Van Thang, the country has fulfilled the necessary criteria through decisive government policies and regulatory changes. At a recent meeting with representatives from the London Stock Exchange (LSE) in London, the minister underscored the government’s ongoing commitment to enhancing market openness and transparency as part of this strategic goal.
Vietnam’s government recently approved a plan targeting the stock market upgrade by 2025. This plan aims to meet all requirements set by FTSE Russell, including nine mandatory core criteria and two non-mandatory reference criteria. These criteria will be assessed based on actual market experience and feedback from foreign investors, highlighting the practical improvements Vietnam has implemented. Key among the reforms is the removal of pre-funding requirements for foreign investors, which historically posed a barrier to investment. Alongside this, the country has enhanced transparency on foreign ownership limits and strengthened its legal and regulatory framework to align with international standards.
The Ministry of Finance’s efforts have garnered positive recognition from global index providers such as FTSE Russell, which monitor market classifications closely. The next review by FTSE Russell is scheduled for October 7, 2025. Vietnam’s stock market currently has a market capitalisation approaching $352 billion, equivalent to about 79.5% of the nation’s GDP, with liquidity steadily improving. Some trading sessions have recorded between $3 billion in transaction value, and the average daily trading volume has reached $1.1 billion this year, making Vietnam one of the most active equity markets in the ASEAN region.
Minister Thang also highlighted Vietnam’s intention to expand cooperation with the London Stock Exchange in several critical areas. These include enhancing legal frameworks, adopting international standards of corporate governance, improving market supervision mechanisms, and promoting Environmental, Social, and Governance (ESG) principles to foster greater transparency and sustainability. Furthermore, Vietnam is keen to develop new financial instruments such as green bonds, sustainable bonds, and derivatives, reflecting a growing awareness of sustainable finance as integral to market development.
The minister proposed collaborative efforts to connect Vietnamese companies with international investors, particularly those in the UK and Europe, through joint investment promotion activities. Vietnam also seeks advice on market education, capacity building for financial professionals, and the integration of advanced financial technologies like Fintech, artificial intelligence, and blockchain to boost market efficiency and investor protection.
In response, Julia Hoggett, CEO of the LSE, expressed confidence in Vietnam’s evolving capital market and reiterated the exchange’s commitment to supporting Vietnam’s upgrade aspirations. She viewed the LSE as a strategic gateway facilitating global connectivity for Vietnam’s financial market. This partnership was formalised through a memorandum of understanding signed between the Vietnam Stock Exchange (VNX) and FTSE International Limited, aiming to strengthen Vietnam’s capital market infrastructure and enhance its international integration.
The upgrade to secondary emerging market status is anticipated to significantly increase foreign capital inflows, reinforcing Vietnam’s position in the global financial landscape. Market analysts highlight that such upgrades typically attract long-term foreign institutional investments, providing the momentum for deeper market development and improved investor confidence.
Vietnam’s strategy reflects broader ambitions to position its stock market as a key conduit for medium- and long-term capital mobilisation and as an engine of international economic integration. This aligns with the government’s vision of transforming the domestic financial market, not only to meet technical benchmark requirements but to sustain growth and integration in an increasingly interconnected global market.
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Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative is current, with the earliest known publication date being September 16, 2025. The content is original, with no evidence of recycling or republishing across low-quality sites. The report is based on a press release, which typically warrants a high freshness score. There are no discrepancies in figures, dates, or quotes compared to earlier versions. The article includes updated data and does not recycle older material.
Quotes check
Score:
10
Notes:
The direct quotes from Finance Minister Nguyen Van Thang and LSE CEO Julia Hoggett are unique to this report, with no identical matches found in earlier material. This suggests potentially original or exclusive content.
Source reliability
Score:
9
Notes:
The narrative originates from The Investor, a reputable Vietnamese news outlet. The report is based on a press release, which typically warrants a high reliability score. The entities mentioned, including Finance Minister Nguyen Van Thang and the London Stock Exchange, are verifiable and have a legitimate public presence.
Plausability check
Score:
10
Notes:
The claims regarding Vietnam’s stock market upgrade efforts align with recent developments, including the removal of pre-funding requirements for foreign investors and the introduction of the KRX trading system. The narrative is consistent with the region’s economic context, and the language and tone are appropriate for the topic. There is no excessive or off-topic detail, and the tone is formal and consistent with official communications.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is current, original, and based on verifiable sources. The claims are plausible and consistent with recent developments in Vietnam’s stock market upgrade efforts. The language and tone are appropriate, and there are no signs of disinformation.
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