The plan aims to transform the stock market into a vital channel for medium- and long-term capital mobilization, supporting economic development, refining the state-managed market economy, and enhancing regional and international economic integration, reported Saigon Giai Phong News.
As per short-term goal, by 2025, Vietnam aims to meet all criteria for upgrading from a frontier Market to a secondary emerging market by FTSE Russell and maintain that status.
Meanwhile, in the long-term goal, the Southeast Asian country aims to meet the criteria for an emerging market by MSCI and an Advanced Emerging Market by FTSE Russell by 2030.
Among the items in the long term, are plans to introduce new trading mechanisms, or “gradually introduce securities lending and controlled short selling through mechanisms like “waiting-for-securities-to-be-available” trading and intraday trading”.
Another goal is to resolve the pre-funding issue, which currently requires foreign investors to deposit 100% of the funds before trading. This barrier will be removed by implementing a central counterparty (CCP) clearing mechanism for the Vietnamese stock market.