Vietnam outlines market reforms after emerging-market upgrade

Vietnam’s securities regulator has outlined six reform priorities following FTSE Russell’s upgrade of the country to secondary emerging market status. Hoang Van Thu, State Securities Commission (SSC) Vice Chairman, presented the agenda at an industry anniversary seminar in Hanoi on October 21.

Thu said the upgrade could help attract overseas capital, but brought tougher requirements on transparency, access and risk controls. Vietnam’s equity market was valued at ₫10.3 quadrillion on September 30, 2026, representing 80.2% of estimated 2025 GDP. Investor accounts had reached nearly 14.1 million, already above the target of 11 million for 2030.

The SSC’s agenda combines simpler administrative processes and less restrictive business conditions with greater market openness. It includes plans for a central clearing counterparty (CCP) mechanism covering cash equities in 2027. Further priorities cover trading technology, a broader range of products such as green bonds and derivatives, greater participation through professionally managed funds, and stronger supervision and investor safeguards.

Vietnam Stock Exchange Chairman Luong Hai Sinh said the exchange was preparing VN30 index options and examining gold derivatives, gold exchange-traded funds, depositary receipts and cross-border trading. Its work with FTSE Russell includes developing additional indices. Possible changes under consideration also concern corporate governance, free-float requirements and limits on foreign ownership.

Dragon Capital Vietnam proposed examining income tax exemptions for individuals who retain open-ended fund investments for five years or longer. It also sought wider fund distribution through banks and more financial education, including personal finance lessons in high schools. The company estimated the country would need around US$1.46 trillion in investment during 2026-2030, nearly twice the figure for 2021-2025.