Vietnam stock market upgrade hard to achieve if prefunding issue not fixed: regulator
Prefunding requirement and foreign ownership limit are now the largest obstacles facing the upgrade of the Vietnamese stock market and will require practical coordination between relevant ministries and agencies to remove.
The remark was made by chairwoman of the State Securities Commission (SSC) Vu Chan Phuong while chairing a meeting with institutional investors and partners themed “Unlocking the potential of Vietnamese stock market” in Hong Kong earlier this week.
The conference was jointly organized by the SSC and the Asia Securities Industry & Financial Markets Association (ASIFMA) with the support of the World Bank Group (WB) to discuss solutions to upgrade the Vietnamese stock market from frontier to emerging.
Upgrading the stock market is one of the major goals the Vietnamese government is aiming for, Phuong said, adding that it was included in the project "Restructuring the stock and insurance markets to 2020 with orientation to 2025" and in the draft "Strategy on Stock Market Development until 2030". “Vietnam aims to upgrade its stock market from frontier to emerging by 2025,” she noted.

Chairwoman of the State Securities Commission (SSC) Vu Chan Phuong speaks at a meeting with institutional investors and partners in Hong Kong, August 29, 2023. Photo by The Investor/Ta Phu.
According to the SSC leader, in recent years, the regulator has shown great efforts and determination to promote and shorten the market upgrade roadmap. In terms of the legal framework, the Securities Law 2019, the Investment Law 2020, the Enterprise Law 2020 and guiding documents have gradually met the criteria for the upgrade by facilitating investment capital flow, access to information in English, account registration and opening by investors; strengthening disciplines; and strictly handling violations to make the market more transparent.
“Besides growing in size and liquidity, Vietnam's stock market is becoming more transparent and healthy as many violations have been strictly handled,” she stated.
Many businesses, including all large-cap firms in the VN30 group, have been proactive in disclosing information in English, she said, adding many new issues supporting the market upgrade have also been more clearly defined in the government’s Decree 155/2020/ND-CP dated December 31, 2020 and the Ministry of Finance’s Circular 96/2020/TT-BTC dated November 16, 2020.
In the near future, the SSC will continue to propose amendments to relevant legal documents to ensure that the stock market becomes more transparent, open and sustainable, aiding the upgrade process, Phuong said.
"Vietnam's efforts in both legal amendments and practical solutions have created more favorable conditions for foreign investors to participate in Vietnam's capital markets," she added.
The regulator has regularly communicated with Morgan Stanley Capital International (MSCI) and FTSE Russell, a subsidiary of the London Stock Exchange Group (LSEG), to update them on the real situation in the Vietnamese stock market.
At the meeting, rating agencies and major international financial institutions assessed that Vietnam has made many improvements and met a number of important criteria. However, they noted prefunding requirement and strict limits on foreign ownership of shares are among the main hurdles to Vietnam's emerging market status upgrade. Of which, the prefunding requirement is seen as the main problem.
Investors usually settle their trades two days after a deal in open markets, but in Vietnam they have to ensure the availability of funds prior to trade execution, which adds a significant cost for traders who execute multiple daily operations.
The other major hurdle is Vietnam’s strict limit on foreign ownership, which for banks is as low as 30% and has already been attained for many top lenders. Foreign investors are lobbying for gradually raising the limit to 35%.
Both issues require practical coordination among relevant agencies and ministries such as the State Bank of Vietnam (SBV) and the Ministry of Planning and Investment to solve, they said.
According to investors, to upgrade the stock market, Vietnam needs to implement a central counterparty clearing house (CCP) model as stipulated in Decree 155, in which depository banks must become CCP members and fully disclose the maximum foreign ownership ratios of conditional business lines.
Particularly for prefunding, when permitted by the SBV, the implementation of the CCP system is the optimal solution to handle the issue. If this issue cannot be fixed, a stock market upgrade will be very difficult to achieve.
While waiting for the CCP, the regulator is studying immediate technical solutions to minimize foreign investors' concerns regarding prefunding, Phuong noted.
Closing Thursday, Vietnam's benchmark VN-Index had surged 10.89 points, or 0.90%, to 1,224.05, marking its fourth straight gaining session.
- Read More
Vietnam's manufacturing sector returns to growth after 4 months as new orders rise
Despite further export weakness due to U.S. tariffs, the Vietnamese manufacturing sector returned to growth in July as a renewed expansion in new orders supported a faster rise in production, according to S&P Global.
Economy - Sat, August 2, 2025 | 3:07 pm GMT+7
SCG-backed $5.4 bln petrochemical complex in southern Vietnam set to restart in late August
The $5.4 billion Long Son Petrochemicals Complex (LSP) in southern Vietnam may resume operations as early as late August or early September following a nearly one-year hiatus.
Industries - Sat, August 2, 2025 | 1:22 pm GMT+7
Draft resolution on piloting digital asset market in Vietnam to be submitted in August
A draft resolution on piloting Vietnam’s digital asset market is being finalized and expected to be submitted to the government within August, according to a State Securities Commission (SSC) official.
Finance - Sat, August 2, 2025 | 12:35 pm GMT+7
LNG, offshore wind power developers in Vietnam seek policy support to overcome obstacles
As the implementation of LNG and offshore wind power projects remains challenging while enormous investment capital is required, developers definitely need strong support policies and mechanisms, said insiders.
Energy - Sat, August 2, 2025 | 8:47 am GMT+7
US imposes 20% reciprocal tariffs on imports from Vietnam: trade ministry
U.S. President Donald Trump on Thursday signed an executive order imposing new reciprocal tariffs on imports from 69 countries and territories, with rates ranging from 10% to 41%. Vietnam was hit with a 20% levy.
Economy - Fri, August 1, 2025 | 5:47 pm GMT+7
Profit of Vietnam’s top construction contractor Coteccons hits 5-year high in fiscal year 2025
Ho Chi Minh City-headquartered construction giant Coteccons reported a post-tax profit of VND454 billion ($17.32 million) for the 2025 fiscal year (from Q3/2024 to Q2/2025), up 47% year-on-year.
Companies - Fri, August 1, 2025 | 4:58 pm GMT+7
Italian energy giant ENI eyes more bioenergy opportunities in Vietnam
Vietnam wishes to see Italian group ENI expand its investment and partnerships with domestic stakeholders in line with the country's green transition, particularly in the area of carbon capture, utilization and storage (CCUS), said Deputy Minister of Industry and Trade Nguyen Hoang Long.
Energy - Fri, August 1, 2025 | 1:50 pm GMT+7
Vietnam's tech heavyweight FPT exec dies at 57
Hoang Nam Tien, vice chairman of FPT University Council and former chairman of FPT Telecom and FPT Software, both under Vietnam's leading IT corporation FPT, died from a stroke on Thursday, aged 57.
Companies - Fri, August 1, 2025 | 11:21 am GMT+7
Vietnam Airlines’s 6-month profit surpasses full-year target by over 20%
After the first six months of the year, national flag carrier Vietnam Airlines had completed more than half of the year's revenue plan and exceeded the year's profit target by 20.3%.
Companies - Fri, August 1, 2025 | 11:10 am GMT+7
Vietnam's central bank raises credit growth quotas for lenders
Vietnam’s central bank has allowed credit institutions to expand their credit growth limits this year, allocating quotas based on each lender’s capacity, performance, and regulatory compliance.
Banking - Fri, August 1, 2025 | 9:20 am GMT+7
State-controlled VietinBank reports 80% profit surge in Q2, stock price rallies
VietinBank, one of Vietnam’s Big 4 banks, recorded a pre-tax profit of VND12.1 trillion ($462.08 million) and after-tax profit of VND9.75 trillion ($372.34 million) in the second quarter of 2025, up 79% and 80.29% year-on-year respectively.
Banking - Fri, August 1, 2025 | 8:00 am GMT+7
Vietnam conglomerate Vingroup’s H1 profit surges 120% on robust real estate, EV performance
Vingroup JSC (HoSE: VIC) reported a consolidated net profit of VND4,509 billion ($172.2 million) in the first half of 2025, up 120% year-on-year, driven by strong performance in real estate and electric vehicle segments.
Companies - Thu, July 31, 2025 | 9:22 pm GMT+7
Vietnam’s tech unicorn VNG returns to profit in Q2 on steady gaming growth
Vietnamese tech unicorn VNG Corp (UPCoM: VNZ) returned to the black in the second quarter of 2025, supported by robust gaming revenue and tighter cost management.
Companies - Thu, July 31, 2025 | 8:23 pm GMT+7
Southern Vietnam port partners with Chinese firms to expand logistics network
The Long An International Port in the southern province of Tay Ninh on Wednesday signed a cooperation agreement with SPG Bohaiwan Port and Bohwa Shipping Pte Ltd of China to expand its logistics network.
Companies - Thu, July 31, 2025 | 2:51 pm GMT+7
Consortium proposes $850 mln energy storage battery plant in southern Vietnam
A consortium of five international and Vietnamese companies has proposed investing in an energy storage battery plant in the Ho Chi Minh City-based Saigon High-Tech Park (SHTP), with total investment capital of $850 million.
Industries - Thu, July 31, 2025 | 2:35 pm GMT+7
World-class talent ‘absolutely central’ to success of Vietnam's international financial center ambition: Tony Blair Institute
Damian Hickey, regional director, South East Asia, Tony Blair Institute talks with The Investor on international investors’ interest in Vietnam’s dual-campus international financial center (IFC) model and suggests ways to attract world-class talent for the country’s IFC ambition.
Finance - Thu, July 31, 2025 | 10:53 am GMT+7
- Consulting
-
Rethinking resilience: How typhoon Yagi redefines supply chain strategies in northern Vietnam
-
Remove roadblocks to lure foreign investment into Vietnam: HSBC exec
-
AI can be a game changer for Vietnam tourism
-
In trade and investment, ASEAN and China are better together
-
Investment opportunities in LNG-to-power projects in Vietnam
-
Pepper prices 2024: will the dream of 'black gold' repeat?