Vietnam stock market aims for emerging status by 2025: Finance minister

Vietnam’s stock market is expected to move up from frontier to emerging market status by 2025, said Minister of Finance Nguyen Van Thang at the opening bell ceremony for the first trading session of 2025," held today [January 2] at the Hanoi Stock Exchange.

Overview of the ceremony. Source: SSC

Speaking at the event, Thang noted that despite significant impacts from macroeconomic factors and international stock markets, Vietnam's stock market has remained stable and continued to serve as an essential channel for raising capital for the economy.

By the end of 2024, the benchmark VN-Index reached 1,266.78 points, up 12.11% compared to 2023. The market capitalization of listed stocks exceeded $290 billion, a 20% increase year-over-year, equivalent to 70% of Vietnam's  GDP in 2023. The average daily trading value exceeded $860 million, up over 18% from the previous year. Liquidity in the private trading system also rose sharply, averaging over $165 million per session.

Thang, however, stressed the need to accelerate economic growth in 2025 by unlocking resources and assigning critical tasks to the stock market sector.

"We must enhance infrastructure, attract investors—especially international investors—and create a transparent, secure, and attractive environment so that Vietnam's stock market becomes a reliable destination for both domestic and foreign investors," he stated.

Thang also tasked the State Securities Commission of Vietnam (SSC), stock exchanges, and related agencies to refine the legal framework and implement the market development strategy through 2030. A key goal for 2025 is to upgrade Vietnam's stock market from frontier to emerging market status.

He also stressed the importance of ensuring seamless trading operations and expediting the deployment of the new IT system (KRX) to enhance market synchronization. Additionally, Thang called for stricter inspections to crack down on violations in the stock market, mitigate the psychological impact of negative news, and narrow the gap between Vietnam's stock market and global markets.

Thang highlighted the need to study and develop a secondary trading system for carbon credits.

Taking on the assigned tasks, SSC Chairwoman Vu Thi Chan Phuong urged stock exchanges and related agencies to immediately implement the outlined directives.

"Ensure that the market operates stably and securely under all circumstances, especially as we work toward achieving the upgrade target. Accelerate the implementation of the new IT system," she advised.

She further emphasized the importance of facilitating foreign investors'   access by removing obstacles to their participation to achieve the 2025 upgrade goal.

The directives come in the context of Vietnam's stock market witnessing record net selling by foreign investors in 2024, totaling nearly $4 billion.