Vietnam enters new phase of capital market competition

On September 18, SSI hosted a notable event, “A Celebration - Vietnam Into EM,” bringing together top global financial institutions, investment organizations, and financial groups in Vietnam. This gathering marked the country's entrance into the emerging market chapter, set to commence with its first trading session on September 21.

Vietnam is now regarded as one of the region's most active capital markets, trading volumes surpassing those of Singapore and Thailand, according to Bob McCooey, vice chairman of Nasdaq. McCooey highlighted that Vietnam has moved beyond the broader ASEAN group, entering a more competitive tier alongside Korea, Taiwan, and Japan, driven by demand in semiconductor and artificial intelligence sectors.

However, to sustain investor interest, Vietnam must present compelling growth stories and translate them into greater trading activity. Pankaj Mataney, Asia Head of Platform Sales and Index Strategy at Morgan Stanley, anticipates that the FTSE upgrade will broaden the investor base, with index-oriented capital providing an initial boost.

Mataney also expects hedge funds and liquidity providers to become more active as the upgrade takes effect. Phil Chevalier, co-head of Virtu Execution Services APAC at Virtu Financial, expressed the importance of liquidity in the market's development, noting that market makers rely on sufficient liquidity, which in turn requires their participation.

Chevalier emphasized that the FTSE upgrade is about transforming greater international recognition into sustained participation, deeper liquidity, and a more sophisticated market infrastructure.