Vietnam is moving decisively to position its equity markets for an upgrade by major global indices providers, signaling a sustained push to attract foreign capital. A government plan outlines steps to streamline processes for foreign investors, introduce essential market instruments, and relax ownership constraints where appropriate. The government aims to meet FTSE Russell’s criteria to advance its equities market from frontier to secondary emerging status in 2025, and ultimately fulfil MSCI’s emerging market upgrade criteria by 2030. In parallel, regulators rolled out reforms designed to remove barriers to foreign participation, improve market liquidity, and build a more robust infrastructure for trading, clearing, and settlement. These measures come as the VN Index has gained momentum this year, reflecting optimism about Vietnam’s growth prospects and the potential for a more open, deeper, and more globally integrated market.
Strategic ambition: Vietnam’s path to MSCI emerging market status by 2030
Vietnam’s government has articulated a long-term roadmap to align its equity market with the standards and expectations of major international investors. The core objective is to meet MSCI’s emerging market upgrade criteria by 2030, a target that implies not only compliance with quantitative thresholds but also adherence to qualitative expectations around market transparency, governance, efficiency, and accessibility for foreign capital. The plan reflects a broader strategy to position Vietnam as a stable, attractive destination for cross-border investment in Asia, balancing rapid growth with a disciplined regulatory framework.
The stated approach emphasizes several pillars: simplification of procedures for foreign investors, streamlining registration and account-opening processes, and the ability to open indirect investment capital accounts with greater ease. Each of these pillars is designed to reduce friction that often deters foreign participants from committing capital, especially in markets where onboarding procedures, paperwork, and regulatory handoffs can create delays or uncertainty. By simplifying these steps, Vietnam aims to broaden the pool of eligible investors, diversify capital sources, and enhance the depth and resilience of the market.
A critical extension of this strategic aim is the development of market infrastructure that supports more sophisticated investment strategies. The government plans to outline a road map for introducing regulated short selling, as well as securities lending and borrowing mechanisms. Such tools are essential for enabling hedging, arbitrage, and efficient price discovery, particularly for large institutional players whose strategies rely on liquidity and securities-based financing. The road map also includes the development of an advanced payment and clearing ecosystem, which is fundamental to reducing settlement risk, increasing settlement speed, and enabling rapid capital movements in and out of Vietnamese markets.
In addition to procedural and infrastructure enhancements, the plan contemplates a careful review of foreign ownership limits and a relaxation of restraints in sectors where limits are unnecessary. This indicates a move toward more predictable and uniform treatment of foreign participation across the economy, potentially increasing the attractiveness of Vietnamese equities to global funds while preserving domestic policy objectives. The emphasis on aligning ownership rules with international standards is consistent with the expectations typically associated with multi-asset index providers and with the broader objective of integrating Vietnam’s markets into global financial networks.
The plan’s emphasis on an orderly upgrade path—FTSE Russell criteria in the near term and MSCI criteria in the longer term—reflects an understanding that multiple index providers weigh different aspects of market accessibility, governance, and infrastructure. Meeting FTSE Russell’s criteria to elevate the market from frontier to secondary emerging status in 2025 is positioned as a stepping stone toward the more consequential MSCI upgrade by 2030. This staggered approach allows domestic reforms to take effect, gives foreign investors a clearer timetable, and enables the government to monitor progress and adjust as necessary. As such, the strategy is designed to create stability, predictability, and confidence in Vietnam’s equity market among international investors and index providers alike.
The overall strategy is also a response to competitive pressures among regional markets that are courting foreign index inclusion. In recent years, several Southeast Asian markets have pursued similar reforms to attract global capital by improving market structure, reducing friction for foreign participants, and enhancing regulatory clarity. Vietnam’s plan explicitly mentions FTSE Russell and MSCI as the benchmark providers that shape policy direction, signaling a recognition that inclusion in major global indices translates into sustained foreign inflows and a broader global investor base. The expected payoff is enhanced liquidity, lower cost of capital for domestic firms seeking funding, and a broader investor ecosystem that can support diversified asset allocations across the Vietnamese market.
This multi-year, multi-faceted ambition requires careful sequencing, technical readiness, and strong governance. It also presumes that regulatory actions are complemented by consistent enforcement and ongoing evaluation of market outcomes. The government’s framework suggests not only regulatory changes but also ongoing dialogue with market participants, exchanges, financial institutions, and international bodies to ensure alignment with evolving standards and expectations. If successfully implemented, the strategy could position Vietnam as a more integrated and credible destination for foreign investment, with a market structure capable of supporting diverse investment styles and risk appetites.
Streamlining access for foreign investors: registration, onboarding, and indirect capital accounts
A central element of Vietnam’s reform plan is to simplify and expedite the pathways through which foreign investors can participate in the domestic equity and bond markets. The government intends to streamline the registration process and speed up account opening for foreign participants, reducing bureaucratic delays and improving the overall user experience. Simplified onboarding can significantly influence foreign investor sentiment by lowering entry barriers and minimizing administrative friction, which are common considerations for institutional funds evaluating new markets.
In addition to simplifying registration, the plan targets the opening of indirect investment capital accounts. Indirect investment accounts allow foreign institutions and individuals to access Vietnamese assets through vehicles such as fund managers, asset managers, or authorized intermediaries rather than establishing direct, standalone accounts. This approach can help investors diversify across Vietnamese securities while leveraging established processes, compliance frameworks, and custody arrangements that foreign participants are more accustomed to using in other markets. By enabling indirect access, Vietnam can attract a broader spectrum of foreign players, including those who prefer to outsource the day-to-day operational complexities of direct market participation.
To realize these onboarding objectives, the government will likely pursue a combination of regulatory and procedural changes. Potential steps could include harmonizing KYC/AML requirements with international best practices, facilitating faster background checks and licensing for foreign participants, clarifying the documentation standards for account openings, and establishing centralized registration portals that can serve as a one-stop interface for investors. This would reduce duplication of efforts, minimize redundant filings, and streamline the overall process with standardized timelines and checkpoints. A robust onboarding framework will also require well-defined roles for regulatory bodies, exchanges, Custodian banks, and clearinghouses to ensure smooth handoffs and clear accountability.
The onboarding reforms will also necessitate enhancements to the domestic financial ecosystem, including the development of digital infrastructure that supports efficient onboarding. This could involve modernizing back-office systems, integrating with cross-border custody networks, and enabling seamless data sharing among relevant agencies and market participants. In practice, the combination of streamlined registration and accessible indirect investment mechanisms could unlock a larger pool of capital for Vietnamese markets, particularly for global funds that require efficient, scalable processes for market entry.
Another important consideration is the alignment of onboarding reforms with protections for investors and the integrity of the market. The government is expected to implement safeguards that ensure compliance with anti-money-laundering standards, know-your-catient procedures, and transparent reporting. The reforms will likely be accompanied by clear guidelines on disclosure, governance, and the treatment of foreign ownership within existing legal frameworks. As foreign participants become more engaged, policy makers will need to balance openness with safeguards that preserve market stability, corporate governance, and systemic resilience.
A broader implication of streamlined onboarding and indirect access is the potential for improved market depth and liquidity. When more foreign participants can participate more easily, trading volumes can rise, spreads may compress, and the price discovery process can become more efficient. This dynamic, in turn, can attract a broader set of market makers, research providers, and product developers, further enhancing the investor ecosystem. To sustain these benefits, the government will need to maintain transparent, predictable, and non-discriminatory rules that apply equally to domestic and foreign participants and that are consistently enforced.
In practice, the onboarding reforms will be connected to the development of the country’s market infrastructure. For example, as foreign access expands, there will be increased demand for robust settlement and clearing capabilities, secure payment rails, and reliable post-trade processing. The plan’s emphasis on an advanced payment and clearing system aligns with these needs, ensuring that flows of capital associated with inbound foreign investment can be settled quickly and securely. The combination of simplified onboarding with improved post-trade infrastructure should contribute to a more attractive investment environment for foreign market participants.
Ultimately, these measures aim to deliver a more user-friendly, predictable, and scalable environment for foreign investment in Vietnam. The goal is not just to attract new entrants but also to improve competition, pricing efficiency, and product diversity within the domestic market. As foreign players engage, local participants may respond by enhancing transparency, governance, and market discipline, creating a virtuous cycle that supports sustainable long-term growth for the Vietnamese equity market.
Market infrastructure enhancements: short selling, securities lending, and clearing infrastructure
A key pillar of Vietnam’s reform plan centers on expanding the market’s toolkit by introducing regulated short selling, securities lending and borrowing, and a more advanced payment and clearing infrastructure. These elements are foundational to modern capital markets, enabling more sophisticated trading strategies, improving liquidity, and strengthening risk management practices across the financial system.
Regulated short selling allows investors to profit from declines in stock prices through borrowing shares and selling them with the obligation to repurchase later at a lower price. This mechanism adds to price discovery by providing a channel through which investors can express negative views on securities and hedge long positions. It also helps to reduce stock price distortions created by imbalances in buying pressure and can improve market efficiency when properly regulated. The introduction of regulation in this area would require robust governance, safeguards to prevent abusive practices, and clear rules governing borrowing, availability, and settlement timelines. The objective is to strike a balance between enabling legitimate hedging and speculative activity while mitigating systemic and counterparty risk.
Securities lending and borrowing is a complementary capability that supports short selling and broader liquidity enhancements. Lenders provide securities to borrowers in exchange for collateral and a fee, enabling market participants to implement various strategies while maintaining a robust borrower base. A formalized securities lending market can increase the utilization of existing stock inventories, widen the set of eligible securities for investment strategies, and improve overall market efficiency. Establishing a secure and well-regulated market for lending requires careful design of collateral frameworks, risk controls, and disclosure requirements, as well as clear operational procedures for settlement, recall, and close-out processes.
The development of an advanced payments and clearing infrastructure is essential to support higher volumes and faster settlement cycles that accompany greater foreign participation and broader market activity. A modernized clearing and settlement system reduces counterparty risk, enhances operational resilience, and enables more complex trading activities, including those that involve cross-border flows. In practical terms, improvements may include real-time or near-real-time settlement capabilities, cash and securities settlement integration, enhanced reconciliation mechanisms, and standardized messaging and data formats across market participants. The aim is to minimize settlement fails, lower clearing costs, and ensure robust risk management at the clearing layer.
In addition to these core instruments, the reforms may entail enhancements to collateral management, risk controls, and pre- and post-trade transparency. A well-designed market infrastructure will provide credible safeguards against potential abuses and build confidence among both local and international participants. It will also require ongoing supervisory oversight, clear regulatory guidance, and the adoption of best practices consistent with international market standards. A comprehensive approach to market infrastructure is necessary to ensure that the benefits of liquidity improvements and more efficient price discovery are realized without compromising market integrity or financial stability.
The envisioned infrastructure upgrades are not merely technical improvements; they have strategic implications for Vietnam’s global competitiveness as a financial center. By offering a more complete set of market tools, the country can attract more sophisticated investors, including asset managers, hedge funds, and international banks, who require strong risk management capabilities and a reliable post-trade framework. Over time, these capabilities can contribute to deeper markets, more resilient price discovery, and a broader range of investable instruments for both domestic and foreign participants.
As these measures progress, close coordination among regulators, exchanges, clearinghouses, and market participants will be critical. The implementation timeline will need to consider the readiness of counterparties, the availability of technical expertise, and the necessary legal and regulatory underpinnings. The long-term goal is a well-functioning ecosystem where short selling and securities lending operate safely within a tightly regulated environment, backed by sophisticated clearing and settlement infrastructure, underpinned by a reliable and efficient payments framework.
Domestic ownership rules and sectoral access: aligning with international standards
A notable element of Vietnam’s reform agenda is the plan to review and adjust foreign ownership limits, with a focus on removing unnecessary restrictions in sectors where limits are not warranted under domestic law or international agreements. This approach suggests a strategic effort to harmonize domestic regulations with international norms, thereby facilitating greater foreign participation while maintaining prudent oversight and alignment with macroeconomic and national policy objectives.
The proposed changes are designed to create a more predictable and transparent regulatory environment for investors. When foreign ownership rules are consistent and non-discriminatory, market participants can calibrate their risk and investment strategies with greater confidence. For many investors, the existence of inconsistent or opaque ownership limits can be a significant hurdle, prompting them to avoid sectors or markets where such constraints are more restrictive than warranted. By standardizing and rationalizing these limits, Vietnam aims to lower the barriers to entry for foreign funds and encourage a broader distribution of capital across the domestic economy.
This initiative aligns with the expectations of index providers and global investors who look for markets with clear, fair, and enforceable ownership policies. It also supports the broader objective of creating an open, rule-based market that accommodates international investment while still upholding the country’s strategic and policy priorities. The reform is intended to reassure investors that foreign participation will be treated consistently across sectors, removing the distortions that can arise when different sectors have divergent ownership caps.
In practice, the review process will involve examining current ownership limits, comparing them with domestic law and international agreements, and identifying sectors where restrictions are unnecessarily tight. The government would then define a path to adjust these limits where appropriate, potentially through legislative amendments, regulatory guidance, or administrative reforms. An essential aspect of this process will be ensuring that any changes are gradual, transparent, and well-communicated to market participants to avoid sudden capital flows that could destabilize certain segments.
Moreover, aligning ownership rules with international standards can have a downstream effect on market depth and investor confidence. When foreign investors know that ownership caps reflect a measured and predictable framework, they are more likely to allocate capital over the long term. This can lead to a more diversified investor base, more robust liquidity, and improved price discovery. At the same time, the government will be mindful of domestic sectoral sensitivities and strategic industries where ownership restrictions may remain appropriate or require careful calibration to balance capital inflows with national priorities.
The process for adjusting ownership limits will likely be informed by ongoing consultations with market participants, exchanges, regulators, and international partners. It will require careful design to avoid unintended consequences such as destabilizing sectors that are constrained by ownership thresholds or creating regulatory loopholes that could undermine market integrity. A thoughtful, well-communicated approach will be essential to manage expectations and ensure that reforms deliver the desired improvements in investment climate and market efficiency.
Looking ahead, the proposed review of ownership limits, combined with the other reforms—simplified onboarding, enhanced trading tools, and upgraded market infrastructure—positions Vietnam to make meaningful progress toward its stated upgrade targets. While the precise timing and sequencing of each reform may evolve as implementation proceeds, the overarching objective is clear: to foster a more open, efficient, and investor-friendly market environment that aligns with international standards and supports sustainable long-term growth.
FTSE Russell and MSCI: upgrading the Vietnamese market toward emerging status
Vietnam’s reform program explicitly ties its near-term and longer-term ambitions to the criteria set by major global indices providers. The government intends to fully meet FTSE Russell’s criteria to elevate its equities market from frontier to secondary emerging status in 2025, a milestone expected to precede the upcoming upgrade by MSCI. This sequencing reflects a pragmatic approach: FTSE Russell criteria are often used as a baseline gauge of market accessibility, governance, and infrastructure, while MSCI evaluates broader, multi-faceted aspects of market maturity.
The plan shows a clear recognition that meeting FTSE Russell’s benchmarks can provide early validation of Vietnam’s reform path and help build momentum ahead of MSCI’s more comprehensive assessment. FTSE Russell’s methodology tends to emphasize factors such as accessible market structure, ease of capital flows, the reliability of settlement and clearing, and the overall transparency of corporate governance and market operation. Achieving the FTSE Russell thresholds would signal to global investors and index providers that Vietnam is moving in the right direction on these fundamental dimensions.
MSCI’s upgrade criteria, by contrast, typically involve a broader assessment of market size, liquidity, accessibility for foreign investors, operating hours and trading infrastructure, corporate governance standards, and the robustness of regulatory oversight. An upgrade to emerging market status is often accompanied by increased foreign index inclusions, larger potential inflows, and a more prominent place on international investment menus. Vietnam’s plan to meet MSCI’s criteria by 2030 suggests a long-term, phased effort that extends beyond the initial FTSE Russell milestone and underscores a sustained commitment to market transformation.
The government’s stated timeline indicates a structured ladder of reforms. By reaching FTSE Russell’s secondary emerging market criteria by 2025, Vietnam would demonstrate progress toward deeper market functioning and greater capital-market openness. This early milestone would be essential for signaling to investors that reforms are on track and that the market is becoming more aligned with international norms. The subsequent objective—fulfillment of MSCI’s emerging market upgrade criteria by 2030—would then aim to place the Vietnamese market within a framework that already includes a proven track record of improvements in liquidity, accessibility, and governance.
It is important to note that FTSE Russell and MSCI operate on distinct schedules and with separate evaluation processes. While FTSE Russell’s criteria are often considered a more immediate readiness test for market infrastructure and operational transparency, MSCI’s evaluation tends to emphasize a broader set of considerations, including market depth, investability, and the ability to sustain foreign participation across multiple asset classes. Vietnam’s strategy, therefore, reflects an integrated plan designed to steadily advance through incremental milestones while aligning with the expectations of both index providers.
From an investor perspective, the FTSE Russell milestone offers a concrete signal that Vietnam is progressing along a credible reform path. A successful upgrade in 2025 would likely attract renewed attention from global funds that rely on index-based strategies or benchmark-driven allocations. The anticipated MSCI upgrade by 2030 would amplify those flows and could be accompanied by additional interest from passive and active managers seeking exposure to a broader array of Vietnamese equities and fixed-income instruments. In this sense, the reforms pursue a long-term growth trajectory for the country’s capital markets by progressively expanding the universe of eligible securities, reducing barriers to entry, and providing more trustworthy governance and operational standards.
The government’s reliance on FTSE Russell and MSCI as benchmarks also reflects an awareness of the practical implications of index inclusion. Inclusion in major indices often translates into sustained capital inflows, improved liquidity profiles, better price discovery, and enhanced global visibility for domestic issuers. Conversely, failure to meet key criteria could imply slower inflows and a need for policy recalibration. Therefore, the reform program is not only about technical improvements but also about communicating a credible, forward-looking commitment to international investors and the global market community.
In parallel with these index-driven objectives, the reforms are positioned within broader macroeconomic and development goals. As Vietnam seeks to attract more foreign investment into its equities and broader financial markets, the country’s economic resilience, growth prospects, and policy stability are central to sustaining investor confidence. The reform package is designed to be coherent with the country’s broader development plan, ensuring that financial-market reforms support the real economy by facilitating access to capital, improving corporate governance, and encouraging innovation and competitiveness among Vietnamese firms.
Market performance and investor sentiment: implications of the regulatory push
Vietnam’s stock market has shown notable momentum, with the VN Index rising by more than 31% this year amid optimism about stronger economic growth and the potential upgrade of its market classification. This performance underlines the market’s sensitivity to policy developments that improve accessibility, liquidity, and the efficiency of financial infrastructure. A rising index not only reflects existing macroeconomic fundamentals but also acts as a signal to both domestic and foreign investors about the market’s trajectory and potential for further gains as reforms unfold.
The recent regulatory reforms that took effect concurrently with this performance mark a critical nexus between policy action and market outcomes. One reform, in particular, addresses the power of public companies to unilaterally impose foreign ownership limits that are lower than those allowed by domestic law or international agreements. By constraining the ability of issuers to deviate from established foreign ownership rights, this measure promotes a more predictable investment climate and reduces the risk of sudden shifts in ownership constraints that can disrupt trading or deter investment.
For foreign investors and international institutions, the combination of a favorable regulatory environment, improved market infrastructure, and a positive growth outlook translates into a compelling investment narrative. The prospect of entering a market with clearer rules, easier access, enhanced liquidity tools, and fewer arbitrary restrictions is attractive for long-term capital allocation. The VN Index’s performance demonstrates that investors are already pricing in the potential benefits of reform, while the ongoing policy work provides a clear pathway for further upside as reforms mature and become fully operational.
The reforms’ alignment with FTSE Russell and MSCI upgrade timelines adds another layer of validation. Investors often rely on the visibility and credibility that come with index inclusions, and the plan to meet FTSE Russell’s criteria by 2025 positions Vietnam for more predictable inflows and a more robust investable universe sooner rather than later. The 2030 MSCI target reinforces the longer-term growth story by signaling that Vietnam intends to maintain momentum and keep pace with international standards over an extended horizon. This dynamic can foster sustained investor interest and may support continued appreciation in the VN Index as reforms take root.
Nevertheless, market participants must also consider potential risks and challenges associated with rapid reform. Implementing a broad portfolio of structural changes—such as onboarding reforms, the introduction of short selling, and the modernization of clearing and settlement—requires careful risk management. The success of these reforms depends on effective supervision, clear rules and guidelines, robust operational readiness, and ongoing market monitoring. Potential risks include operational glitches during the transition, the emergence of unintended consequences in sectors with previously restrictive ownership regimes, and the need for continued policy clarity to prevent uncertainty among participants. Regulators, exchanges, and market participants will have to collaborate closely to anticipate and mitigate such risks.
From a practical perspective, the reforms’ impact on liquidity and price discovery will be a function of successive implementation milestones and market adaptation. In the near term, improvements in onboarding, clearing, and the introduction of regulated short selling could begin to enhance liquidity in certain segments, particularly those that are of high strategic interest to foreign investors. Over time, as the market benefits from deeper liquidity, greater access to foreign capital, and more efficient post-trade processes, liquidity profiles across a broader set of securities may strengthen, supporting more robust trading activity and more stable price formation.
Investor education and market communication will also be important during this transition. As new instruments and processes come online, it will be essential for market participants to understand how to engage with the enhanced framework, how to access indirect investment channels, and how to manage the risk and compliance considerations associated with new market tools. Regulators and the exchanges can play a crucial role by providing clear guidance, transparent disclosures, and practical examples that help investors navigate the evolving landscape.
In sum, the current market performance, coupled with a coherent reform agenda, positions Vietnam to realize its ambition of stronger foreign participation and longer-term upgrade milestones. While the path to full MSCI emerging market status by 2030 is ambitious and subject to both domestic execution and global market dynamics, the steps being taken appear calibrated to deliver measurable improvements in market accessibility, liquidity, and governance. As reforms materialize and market participants adjust, the VN Index and broader financial markets are likely to reflect a combination of optimism surrounding growth prospects and disciplined expectations about the pace and scope of policy implementation.
Implementation timeline, governance, and the path forward
The government’s reform package is structured with a phased approach designed to deliver tangible improvements over time while maintaining diligence in governance and risk management. The stated goal of meeting FTSE Russell’s criteria by 2025 and MSCI’s criteria by 2030 creates a clear frame for planning and execution that market participants can monitor and plan around. The timeline implies a sequence of policy actions, technical upgrades, and institutional reforms that build on each other, reinforcing the integrity and credibility of the overall program.
An essential governance component of this plan is the establishment of clear roles and responsibilities across stakeholders. Regulators will need to set and enforce standards for onboarding, ownership rules, market surveillance, and post-trade processing. Exchanges will be tasked with implementing and operating new market tools, such as regulated short selling and securities lending, while ensuring fair access and transparency for participants. Custodians, brokers, and clearinghouses will play a vital role in risk management, settlement efficiency, and operational reliability. A centralized approach to data, reporting, and compliance will be important to maintain coherence across the various reforms and to ensure that market participants have confidence in the new regime.
From a practical standpoint, the reforms will likely occur in stages with explicit milestones and review points. The initial phase would focus on reducing onboarding friction and enabling indirect investment channels, which can provide near-term improvements in accessibility and participation. The subsequent phase would introduce short selling and securities lending, followed by the deployment of an upgraded payments and clearing framework. Each stage would require pilot programs, risk assessment, and iterative improvements based on feedback from market participants and regulators. The staggered approach helps manage operational risk and ensures that capacity and governance mechanisms scale in parallel with market demand.
The reforms also imply ongoing assessment of market performance, including liquidity metrics, spreads, turnover, and foreign participation levels. Regular reporting and evaluation will be essential to demonstrate progress toward FTSE Russell’s and MSCI’s criteria, and to identify any adjustments necessary to maintain momentum. Market surveillance and enforcement will be necessary to preserve integrity as new instruments enter the market. The government’s commitment to reviewing foreign ownership limits and removing unnecessary restrictions will require careful policy design and a transparent, consultative process to ensure alignment with economic objectives and international standards.
Economic and financial stability considerations will guide the pace and sequencing of reforms. While liberalization and openness are attractive for attracting foreign capital, policymakers must ensure that the regulatory framework remains robust and resilient to global market shocks. The reforms should be designed to preserve macroeconomic stability, maintain financial sector soundness, and safeguard against systemic risk. In this context, strengthening risk governance, enhancing transparency, and reinforcing supervisory capacity will be essential complements to the market-access reforms.
The broader objective of the reform program is to foster a stable, vibrant, and inclusive financial market that can support long-term economic growth. By expanding foreign participation, improving liquidity, and aligning with international standards, Vietnam aims to create a more diversified investor base and a more sophisticated financial ecosystem. In turn, this can help Vietnamese firms access capital on favorable terms, support domestic innovation, and promote broader market-based financing across the economy. The ultimate measure of success will be the sustained participation of a wide range of foreign and domestic market participants, improved market efficiency, and an environment that sustains investor confidence across cycles.
As this ambitious reform agenda unfolds, stakeholders will closely watch how the reforms translate into real-world outcomes. The path to MSCI emerging market status and to a more pedestrian but nonetheless vital set of improvements in market infrastructure and governance will require consistent policy execution, careful risk management, and ongoing collaboration among government agencies, the stock exchange, financial institutions, and the investing community. If these elements align, Vietnam could achieve a more resilient, liquid, and globally integrated equity market that supports the country’s broader development goals.
Conclusion
Vietnam is pursuing a comprehensive reform program designed to upgrade its equity market to meet FTSE Russell’s criteria by 2025 and MSCI’s criteria by 2030. The plan emphasizes simplifying access for foreign investors, streamlining registration and onboarding, and enabling indirect investment accounts to widen participation. It also focuses on building essential market infrastructure through regulated short selling, securities lending and borrowing, and a modernized payments and clearing system. In parallel, authorities intend to review and rationalize foreign ownership limits to reduce unnecessary restrictions in sectors where they are not required by law or international agreements.
The VN Index’s strong performance this year reflects investor optimism about these reforms and the market’s growth prospects. The reforms’ broader objective is to attract more foreign capital, deepen liquidity, and improve price discovery while maintaining robust governance and financial stability. Implementing these reforms will require careful sequencing, clear governance, and ongoing collaboration among regulators, exchanges, financial institutions, and market participants. If executed effectively, Vietnam’s reforms could deliver a more open, resilient, and globally competitive equity market that supports sustainable economic growth and improves access to capital for Vietnamese enterprises.
In the longer term, achieving MSCI’s upgrade criteria by 2030 would mark a significant milestone, reinforcing Vietnam’s status as a rising regional financial center and expanding the reach of Vietnamese assets to a broader international investor base. The reform path is designed to be incremental, allowing the market to adapt and evolve while building credibility with index providers and investors alike. The combination of policy clarity, enhanced market infrastructure, and a more accessible foreign participation framework will be critical to sustaining momentum and ensuring that the upgrades translate into meaningful and lasting benefits for Vietnam’s economy and financial markets.