The Vietnamese government is making focused efforts to implement solutions for stock market upgrade, Minister of Finance Nguyen Van Thang announced at a working session with the London Stock Exchange (LSE), held on September 15 (local timse) as part of his business trip to the United Kingdom.

To date, Vietnam has striven to meet the upgrade criteria of FTSE with strong reforms and decisive policies, such as the synchronous promulgation of many mechanisms and policies that took effect immediately to facilitate foreign investment capital flows into the domestic stock market, Minister Thang said.

During the business trip, Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (under Vietnam's Ministry of Finance), will work directly with FTSE Russell to discuss issues related to the upgrade of Vietnam's stock market. Additionally, the ministry will organize an Investment Promotion Conference in London on the morning of September 16 (local time) to fully inform about Vietnam's financial market.

Regarding the Vietnam’s stock market, the minister said that the total stock market capitalization reached nearly $352 billion by the end of August, equivalent to 79.5% of the estimated GDP for 2024. Market liquidity increased significantly, with some sessions seeing transaction values exceeding $3 billion. Since the beginning of the year, the average transaction value has reached over $1.1 billion per session, placing it among the most vibrant in the ASEAN region.

In the spirit of cooperation and sustainable development, Mr. Thang proposed several directions for cooperation between Vietnam and the LSE in the coming time.

Specifically, Vietnam wishes to strengthen the exchange of experience in building and perfecting the legal framework, market surveillance mechanisms, the application of international standards on corporate governance, information disclosure, and promoting sustainable growth, thereby enhancing transparency, safety, and global integration. In addition, Vietnam is interested in learning from experience in developing new products to diversify securities products such as green bonds, sustainable bonds, and derivative securities instruments.

The finance minister also proposed promoting joint investment programs and promotional activities to build and deepen connections between Vietnamese businesses and international investors, especially in the UK and Europe. Furthermore, Vietnam also hopes to receive shared experience in training, raising market awareness, enhancing the capacity of financial-securities human resources, and applying financial technology (Fintech, AI, Blockchain) to contribute to improving market efficiency.

In that spirit, Ms. Julia Hoggett, CEO of the LSE, also discussed cooperation initiatives in the context of Vietnam actively implementing solutions for upgrading its stock market, such as cooperation between FTSE Russell and Vietnam's State Securities Commission to resolve obstacles in upgrade criteria; signing an MOU to cooperate on index development between the Vietnam Stock Exchange (VNX) and FTSE Russell…

Responding to the minister's proposals, Ms. Hoggett expressed strong agreement and confidence in the future development of Vietnam's stock market. For its part, the LSE will continue to strengthen cooperation to support Vietnam's stock market in its upgrade to emerging market status.

Ms. Hoggett expected that the cooperation between the two sides will take new steps forward and that the LSE will be an effective "gateway" for the Vietnamese market to connect with many other markets around the world.

On the occasion, VNX and FTSE International Limited signed a Memorandum of Understanding (MOU), officially establishing a strategic cooperative relationship to enhance capital market infrastructure and promote Vietnam's international integration.