Investment fund performance rating platform to take shape in Vietnam: depository authority

Vietnam Securities Depository and Clearing Corp. (VSDC) is developing a performance evaluation platform for investment funds as part of a broader effort to modernize market infrastructure and align with international standards ahead of the country's planned market status upgrade next year.

Nguyen Son, chairman of VSDC’s members’ council, said the depository is working with the State Securities Commission's (SSC) board for management of fund management companies and securities investment funds to build a comprehensive fund database and develop a standardized performance assessment system based on global benchmarks.

Speaking at a recent seminar titled “New money, new securities, and opportunities in an emerging market” hosted by the Vietnam Securities Journalists' Club, Son added that the Ministry of Finance recently assigned VSDC several key tasks to support the market’s reform agenda.

One of the most urgent projects, he said, is building an online straight-through-processing (STP) platform to connect global custodian banks directly with domestic securities firms.

The system will automate communication between custodian banks and securities companies, replacing manual procedures, as foreign investors are no longer required to pre-fund 100% of their trades.

The finance ministry has required VSDC to complete the project in time for FTSE Russell’s next market review in March 2026, targeting a formal "secondary emerging" market upgrade on September 21, 2026.

“Technology providers estimate completion no earlier than December 2026, so we are under significant time pressure and will need strong support from global custodians,” Son noted.

In addition to the STP platform, VSDC has been tasked with creating a centralized information system for investment funds to enhance transparency and strengthen Vietnam’s fund management industry.

The fund performance rating platform is expected to launch in 2026 and will include an independent evaluation and recognition mechanism for top-performing funds to encourage retail participation through professional investment vehicles.

VSDC also plans to upgrade the transfer agent system for exchange-traded funds (ETFs) in the first half of 2026, as ETF activity in Vietnam continues to expand.

Son added that the corporation has committed to launching the first phase ("go-live”) of its central counterparty clearing house (CCP) project by early 2027, with a proposal currently being finalized for submission to the finance ministry.

Once the Korea Exchange (KRX) trading platform stabilizes, VSDC will continue expanding system capacity and infrastructure to accommodate new products such as short selling, intraday trading, and securities lending under a controlled risk framework.

“Under the guidance of the Government, Ministry of Finance, and State Securities Commission, we will gradually introduce new instruments such as VN100 futures and index options,” Son said. “All related systems - from registration and clearing to connections with settlement banks - will be developed in tandem.”