Vietnam's stock market accessibility set to improve with new changes: MSCI
The local stock market is expected to be upgraded to the emerging status by 2022.
The local stock market is expected to be upgraded to the emerging status by 2022.
A transparent manner fully complied with the International Financial Reporting Standards (IFRS) will boost the development of the stock market.
Vietnam’s stock market authorities are actively working with global providers of financial services in MSCI and FTSE Russell to speed up the market upgrading process.
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.
HSBC economists forecast GDP expansion of 3% in 2020 for Vietnam, the only ASEAN country they expect to have positive growth this year.
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.