Transparency and disclosure key to sustaining Vietnam s market upgrade

Vietnam's stock market achieved secondary emerging market status on September 21 when FTSE Russell upgraded it from frontier status. To sustain this upgrade, the country must focus on transparency and disclosure, with the Ministry of Finance drafting a new circular to improve information disclosure in the securities market. The revised circular includes requirements for operational status, technology incidents, payment capacity, and other issues that may affect clearing and settlement activities. English-language disclosures will also expand to additional entities by January 1, 2028.

Luong Duy Phuoc, an analysis director at KAFI Securities Corporation, emphasized that improving the market's infrastructure and operational quality is crucial for retaining long-term capital. Implementing a central counterparty mechanism, refining clearing processes, and addressing barriers to foreign investment are key priorities. The legal framework must also keep pace with fintech, data, and AI developments.

Truong Hien Phuong, a senior director at KIS Vietnam Securities Corporation, highlighted that companies must enhance their quality to meet the criteria of larger funds with more stringent investment standards. They should systematically invest in investor relations, maintain regular dialogues, and provide consistent information to help investors better understand the business.

Stock liquidity and strict enforcement against market manipulation, insider trading, and financial reporting fraud are also essential for building investor confidence.