In this story, I spoke with FTSE Russell representatives and market experts to understand what Vietnam still needs to qualify as an emerging market. I reviewed trading data and recent policy changes to explain the two remaining requirements and why they matter for foreign investors.
Vietnam could attract $5 billion to $6 billion of international capital in 2025 if it is officially reclassified as an emerging market. FTSE Russell requires markets to meet nine of 22 criteria to qualify; Vietnam has cleared seven and now needs to satisfy two remaining tests: removal of pre-trade margin requirements for some foreign investors and a robust framework for handling failed trades.
Regulators have addressed the first issue with Circular 68, which allows certain foreign accounts to trade without pre-trade margin, and the Vietnam Securities Depository Center plans to establish a central counterparty to manage failed trades. FTSE will assess these elements in the coming six to nine months.
This article is a condensed and translated summary (original in Vietnamese, VN) of a feature published in the January 2025 issue of Bloomberg Businessweek Vietnam.
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