According to Mr. Ketut Ariadi Kusuma - Head of Finance, Competitiveness and Innovation Group of the World Bank in Vietnam, upgrading the stock market will be a significant boost for Vietnam's capital market, which will be considered to have adequate market access for foreign investors and have a capitalization level and attractive liquidity on par with many developing countries with a similar level of development as Vietnam.
The World Bank estimates that upgrading the stock market could bring up to $25 billion in new investment from international investors to the Vietnamese market by 2030. Therefore, the conditions for Vietnam to be upgraded are to consider resolving issues related to foreign ownership limits (FOL) and continuing to equitize large state-owned enterprises. Solutions include: Improving information disclosure, increasing access to stocks that have reached the limit and, most importantly, increasing the foreign ownership limit.
Mr. Dominic Scriven - Chairman of the Board of Directors of Dragon Capital Vietnam Investment Fund Management Joint Stock Company - supports and hopes for the early establishment of a central clearing policy in Vietnam (CCP). If it has not been implemented, it is certain that we will have to worry about restructuring when verifying foreign investors. If it is possible, we will soon study and pilot depository certificates without voting rights. He also proposed to continuously develop the infrastructure, platform, and ecosystem of the capital market. Especially here is the network of institutional investors in Vietnam. Controlling the issue of volatility is to constantly strengthen confidence in the stock market, especially the confidence of investors.
Mr. Matthew Smith - Research Director, Yuanta Securities Vietnam - said that the upgrade (with FTSE in 2025 and MSCI in 2026 or 2027) will open up a multi-year bull market period for investment funds in Vietnam, especially stocks. As global fund allocators understand that Vietnam is on the path to emerging market status, more active participation from fund managers is expected before Vietnam is officially upgraded. They may not be ready to join today, but any fund that waits until the market is upgraded to start researching will miss the opportunity.
Source: https://laodong.vn/kinh-doanh/co-hoi-don-dong-von-len-toi-25-ti-usd-1360598.ldo
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