Upgrading is not a destination but a new journey of development

Ông Nguyễn Văn Thắng - Bộ trưởng Bộ Tài chính.

Mr. Nguyen Van Thang - Minister of Finance .

In the early morning of October 8, the Vietnamese stock market was officially announced to meet all the criteria for upgrading to emerging market according to FTSE Russell standards. This is an important milestone marking the strong development of the Vietnamese stock market.

This upgrade event can be said to be historic for the Vietnamese stock market. Especially when we have been on the watch list for upgrading from a frontier market to a secondary emerging market according to FTSE Russell standards since 2018.

VTV reporter interviewed the Minister of Finance about this result.

Reporter: Minister, after many years of waiting, FTSE Russell has officially upgraded Vietnam's stock market from frontier to emerging market. As the head of the Finance sector, what do you have to say about this result?

Mr. Nguyen Van Thang - Minister of Finance: Upgrading is one of the important milestones in the development journey of over 25 years. FTSE officially recognizing and upgrading the Vietnamese stock market not only creates a great opportunity for Vietnam to attract foreign capital resources, but also clearly demonstrates the correct development path and the increasingly deep integration capacity of Vietnam into the international financial system. I commend the State Securities Commission's tireless efforts over the past 2 years.

PV: After being upgraded, what solutions will we have to maintain the ranking and especially develop the stock market to a new stage?

Mr. Nguyen Van Thang - Minister of Finance: Upgrading is not a destination but a journey to develop the Vietnamese stock market. The Ministry of Finance will direct the State Securities Commission and relevant units to continue to closely follow and drastically implement the proposed solutions, creating maximum convenience for domestic and foreign investors to access the market; perfecting the legal framework, and promoting the modernization and digitalization of infrastructure.

The Ministry of Finance hopes to continue receiving the attention, leadership and direction of the Government , and the effective coordination of relevant ministries, branches, international organizations and market members so that the Vietnamese stock market can not only maintain its ranking, but also move towards higher standards.

PV: Thank you, Minister!

Speaking at a press conference on the UK-Vietnam Business Summit on October 7, Mr. Tim Evans, General Director of HSBC Vietnam, said that FTSE's upgrading of Vietnam's stock market is a very positive step forward, as the trading value on the market has exceeded 3 billion USD.

HSBC forecasts that in the first 6 months after the upgrade, passive investment capital flows into the market could increase by 1.5-2 billion USD, while active investment capital flows could be higher.

According to Reuters, HSBC estimated in September that Vietnam could account for 0.5% of the weight in the FTSE Emerging Market Index.

The World Bank also forecasts that short-term capital flows of about 5 billion USD will flow into Vietnam before and after the upgrade, from both active and passive investors.

Source: https://vtv.vn/nang-hang-khong-phai-dich-den-ma-la-hanh-trinh-phat-trien-moi-100251008153350458.htm