Upgrading the stock market: A comprehensive transformation towards qualitative change

Minister of Finance Nguyen Van Thang said that FTSE's official upgrade of the stock market not only opens up great opportunities to attract foreign investment capital, but also demonstrates Vietnam's correct development path and increasingly deep integration capacity.

Minister of Finance Nguyen Van Thang said that the upgrading of Vietnam's stock market is an important milestone in its development journey over the past 25 years. (Photo: Pham Thang)

On October 8, FTSE Russell officially announced the upgrading of Vietnam's stock market from a frontier market to a secondary emerging market.

Evidence of the right path of development

Speaking to the press on the occasion of this event, Minister Nguyen Van Thang affirmed that over the past two years, under the attention and strong leadership of General Secretary To Lam , the Government, the Prime Minister, and the close direction of the Ministry of Finance, the State Securities Commission has implemented a comprehensive reform program to bring the Vietnamese stock market closer to the highest international standards and practices.

According to the Minister, the official recognition and upgrade by FTSE Russell is "the crystallization of the correct policy and strong determination of the Government, the close coordination of the State Bank and ministries, branches, the companionship of market members, as well as the valuable support of the World Bank, FTSE experts and global investment institutions".

The Minister sent his commendation to the State Securities Commission, the Stock Exchanges and the Vietnam Securities Depository and Clearing Corporation for their tireless efforts over the past time.

“It can be said that the upgrading of the Vietnamese stock market is an important milestone in the development journey of over 25 years. The official upgrading of FTSE not only opens up great opportunities to attract foreign investment capital, but also proves the right development path and the increasingly deep integration capacity of Vietnam into the international financial system," the Minister emphasized.

Regarding the market development orientation after being upgraded, Minister Nguyen Van Thang said that upgrading is not a destination but a journey to develop the Vietnamese stock market to grow with quality, transparency and sustainability.

The Finance Minister said: "The official announcement of FTSE's upgrade today is just the first step; we have many higher goals and need to implement them more consistently and decisively."

According to the Minister, this upgrade is the result of a series of reforms from the legal framework, technological infrastructure, product and service quality to the behavior of the investing public, marking a comprehensive transformation in quality and integration.

Vietnam's capital market and stock market will witness qualitative changes. (Source: Fireant.vn)

In the Project to Upgrade Vietnam's Stock Market, the goal set is not only to maintain the secondary emerging market ranking of FTSE Russell, but also to meet MSCI's criteria and move towards the group of high-level emerging markets by 2030.

“Vietnam’s capital market and stock market will witness qualitative changes. Not only will it welcome high-quality foreign capital flows, the market will also require higher standards of corporate governance and transparency. This is the driving force for management agencies, businesses and investors to improve and contribute more strongly to the economy,” the Minister emphasized.

To bring the market to higher standards

Regarding the upcoming orientation, Minister Nguyen Van Thang revealed that the Strategy for Developing the Vietnamese Stock Market to 2030 has clearly defined the goal: Developing a stable, safe, healthy, efficient, sustainable and internationally integrated stock market; becoming the main medium and long-term capital mobilization channel for the economy; at the same time focusing on developing green finance, sustainable finance and promoting digital transformation.

Accordingly, the Ministry of Finance will direct the State Securities Commission and relevant units to continue perfecting the legal framework, promoting modernization and digitalization of market infrastructure, creating maximum convenience for domestic and foreign investors, and building a transparent, efficient, and modern stock market according to leading international standards.

The Minister expressed: “The Ministry of Finance hopes to continue to receive the leadership attention of the Party and State, the effective coordination of ministries, branches, international organizations and market members... so that the Vietnamese stock market can not only maintain its current ranking but also reach higher standards, becoming the main capital mobilization channel for economic development in the new era."

Source: https://baoquocte.vn/nang-hang-thi-truong-chung-khoan-buoc-chuyen-minh-toan-dien-huong-den-su-thay-doi-ve-chat-330340.html