return icon

When will Vietnam’s stock market be upgraded?

Rong Viet Securities (VDSC) and Mirae Asset believe that MSCI may upgrade Vietnam’s stock market to an emerging market in 2022-2023, while BSC thinks the upgrade would be prior to 2025 at the earliest.

In the latest review in mid-2019, Morgan Stanley Capital International (MSCI) still had not added Vietnam to the watchlist for upgrading from frontier to emerging market, though Vietnam could satisfy all quantitative criteria, including market scale, capitalization value and number of listed companies with capitalization value of $1 billion.



FTSE also did not upgrade Vietnam into a secondary emerging market in the review some days later because of e'problems in offset payment and transaction registration procedures applied to foreign investors.

The latest move that observers believe would have a big impact on the market and remove th''barriers to the market upgrading is the enactment of the new Securities Law in late November 2019 which will take effect in early 2021.

The law had new provisions that aim to protect investors’ benefits by requiring high quality of finance reports and information exposure. The new law also gives more rights to the State Securities Commission (SSC) in examining, supervising and treatment violations related to securities trading activities.

MSCI may add Kuwait to the MSCI Emerging Markets Index in mid-2020. If so, the proportion of Vietnam’s stock in MSCI Frontier Markets Index and MSCI Frontier Markets 100 Index may rise to 25.8 percent and 30 percent, respectively.

“We hope that the changes in the law will help improve the quality of stocks, increase transparency and better protect the benefits of investors, especially small investors,” the report of VN Direct Securities (VNDS) reads.

VNDS analysts think that Vietnam’s stock market may get an upgrading in the next 2 or 3 years. In the best scenario, MSCI would add Vietnam to the watchlist for upgrading in the annual review in June 2021 and would give an official upgrading one year later.

VDSC, also citing the existing problems of the market and emphasizing that MSCI needs some more time to assess the enforcement of the new Securities Law, believes that Vietnam is not likely to get the upgrade before 2022.

Sharing the same view, Mirae Asset Vietnam (MAS) said Vietnam would have to wait until mid-2022. In the worst scenario, the upgrading would be given after 2023.

Meanwhile, BIDV Securities (BSC) is even more cautious when predicting the time for upgrading. It thinks that FTSE may announce the upgrading in 2020 at the soonest, while MSCI would do that ‘prior to 2025’.

Experts believe that even if Vietnam doesn’t get the upgrade this year, it would still get benefits from the upgrading of other markets.

MSCI may add Kuwait to the MSCI Emerging Markets Index in mid-2020. If so, the proportion of Vietnam’s stock in MSCI Frontier Markets Index and MSCI Frontier Markets 100 Index may rise to 25.8 percent and 30 percent, respectively.

Mai Chi 


Vietnam’s stock market turns 20 years old in 2020

Vietnam’s stock market turns 20 years old in 2020

Despite its young age, the Vietnamese stock market has made great contributions to economic development in the last 20 years.

Vietnam’s stock market overreact to nCoV outbreak

Vietnam’s stock market overreact to nCoV outbreak

Chair of the State Securities Commission (SSC) Tran Van Dung commented that the investors have ‘overreacted’ to the nCoV outbreak, believing that the market will recover when the epidemic peaks, as it happened with SARS and H5N1.


Over 1 million mobile subscribers complete information certifying

The Authority of Telecommunications (under the Information and Communications Ministry) yesterday announced the success of over 1 million mobile subscribers in certifying personal information with their carriers.

Satellite Internet sees promising future in Vietnam

Despite having been launched in Vietnam for a long time, satellite Internet does not have a wide market due to its high price. The situation might improve with the introduction of SpaceX’s satellite internet constellation Starlink.

Experts warn Vietnamese banks of risks following US banks’ collapse

If bond issuers fall into insolvency, the price of bonds could fall to zero, creating a high risk for banks.

Hanoi to resume tourism services on West Lake

Hanoi may resume 12 tourism services on the West Lake including boat transportation, after six years of suspension.

Car imports from Thailand still hold largest market share in Vietnam

Thailand once again led the market in terms of value and the number of CBU (complete built unit) cars imported to Vietnam in February 2023.

Deputy PM holds bilateral meetings on sidelines of UN 2023 Water Conference

Deputy Prime Minister Tran Hong Ha had bilateral meetings with many foreign leaders on the sidelines of the UN 2023 Water Conference, which is taking place in New York from March 22-24.

Vietnam temporarily suspends import, circulation of 15 types of medicines

The Drug Administration of Vietnam (DAV) under the Ministry of Health (MoH) has just issued an official dispatch on suspending the import, distribution, circulation and use of 15 types of medicines produced by Arena Group S.A. of Romania.

EVN urged to negotiate with renewable energy investors to fix electricity price

The Ministry of Industry and Trade has urged the Electricity of Vietnam (EVN) and investors of transitional solar and wind plants to negotiate and agree to fix electricity prices before March 31.

Two arrested in 11kg drug transport from France to HCM City case

The Ho Chi Minh City Department of Public Security has just arrested two people involved in the case of transporting over 11 kilograms of narcotics and ecstasy from France to Tan Son Nhat International Airport, Vietnam.


Renowned Vietnamese artists collaborate on unique porcelain artworks


Dragon fruit export turnover reaches 47 million USD

Boxer beats Spainish rival to advance to World Championship’s semifinals

Vietnamese boxer Nguyen Thi Tam trounced Spanish rival Laura Fuertes 5-0 in the women's light flyweight category to advance to the semifinals of the IBA Women’s World Boxing Championships in New Delhi.

Ministry of Health warns of possible outbreaks of dangerous diseases

In its yesterday’s official dispatch to people's committees of provinces and cities on organizing the implementation of the 2023 epidemic prevention plan, the Ministry of Health warned of possible outbreaks of dangerous diseases.

Another enterprise issues bonds, real estate bonds increase in value

A real estate firm has successfully raised funds by issuing VND4.7 trillion worth of corporate bonds. Just days before, another real estate firm also successfully issued VND2.3 trillion worth of bonds.

Stock market violations to face stricter sanctions

The State Securities Commission (SSC) will review the Law on Securities and related decrees to complete the legal framework, and strengthen sanctions for violations to protect the legitimate rights and interests of investors.