Stock market reforms target greater flexibility and efficiency

The State Securities Commission of Vietnam (SSC) is examining a series of reforms aimed at enhancing flexibility and efficiency in the country's stock market. Among the proposed measures are the introduction of midday trading, broader price fluctuation ranges, and the potential elimination of certain scheduled trading and order-matching periods.

These adjustments are being evaluated based on impact assessments, with a primary focus on maintaining system safety, smooth trading, and market stability. SSC Vice Chairman Hoang Van Thu emphasized that ensuring these core aspects will remain the top priority, even if the proposed policies fail to yield the intended effects. The transfer of all stocks currently listed on the Hanoi Stock Exchange (HNX) to the Ho Chi Minh Stock Exchange (HSX) is part of a broader restructuring initiative.

This move is expected to be finalized by 2026, contingent on successful impact assessments and system testing. Additionally, the SSC is studying a plan to categorize securities into distinct groups based on factors such as charter capital size, foreign investor access, free-float ratio, and stock status. Deputy Minister of Finance Nguyen Duc Chi stressed the importance of proactive policy introduction, aligning with the government's strategy for stock market development, and highlighted the need for policies to be grounded in genuine market requirements.

The leadership also underscored the responsibility of regulators and market operators in preparing the necessary conditions for policy implementation. FTSE Russell CEO Fiona Bassett expressed confidence in Vietnam's transition towards an emerging market, noting that the FTSE Russell Global Equity Index Series inclusion has opened the door to potential capital inflows.