Frontier Market

The merging process of Hanoi and Ho Chi Minh City stock exchanges into the Vietnam Stock Exchange continues to be a priority in the coming time.

Vietnam could see a weight increase of 13% in the Frontier Markets Index to become the most important market in this Index.

It takes time for foreign investors to study the new regulations and change their perception to the Vietnam’s stock market, stated a senior official at the stock market watchdog.

Being allowed to short sell and trade at T+0 will help Vietnam improve evaluation criteria under global providers of financial services such as FTSE Russell and MSCI.

Vietnam currently does not have a mechanism to limit the failure of transactions similar to other emerging markets in the region.

Favorable conditions in 2020 are expected to help facilitate the elevation of Vietnam’s stock market classification from a “Frontier Market” market to an “Emerging Market” by MSCI.

The upgrade is likely to widen Vietnam’s access to large funds allocated according to the FTSE Emerging Index, including Vanguard FTSE Emerging Market ETF.