VSDC Chairman: Vietnamese stocks may meet MSCI’s upgrade criteria earlier than planned

The above comment was shared by Mr. Nguyen Son, Chairman of the Board of Members of Vietnam Securities Depository and Clearing Corporation (VSDC), at the Vietnam Investment Forum 2026 event. According to the upgrade project approved by the Government last year, securities strive to meet the criteria for upgrading to emerging market according to MSCI standards – the world’s leading index provider – by 2030.

According to Mr. Nguyen Son, the State Securities Commission prepared this plan 3-5 years ago. “After the milestone of being upgraded to an emerging market by FTSE Russell, Vietnam can meet additional MSCI criteria by 2028 or 2029, earlier than the original plan,” Mr. Son said.

Last year, Mr. Nguyen Duy Hung, Chairman of SSI Securities, commented that the conditions to be upgraded according to MSCI’s standards are much stricter than those of FTSE Russell. Not only considering the size and liquidity of businesses, MSCI also deeply evaluates the accessibility of foreign investors including transaction and payment mechanisms, foreign ownership limits (foreign “room”), level of transparency, ability to transfer money, level of legal stability…

Mr. Nguyen Son said that Vietnamese stocks have two big problems that need to be solved to be upgraded according to MSCI standards. First, this organization requires the market to have an independent legal entity to act as a central clearing partner (CCP). This is an intermediary unit, standing between buyers and sellers, to minimize risks when paying for securities transactions.

In addition, MSCI sets requirements related to the omnibus account model. This is a mechanism in which a depository bank or an intermediary organization only manages a single securities account, but within it contains the assets of many different investors.

To solve the above problems, Mr. Nguyen Son informed that VSDC has completed the establishment of a member unit, Central Clearing Partner Company Limited (CCP). This legal entity is completing the technological infrastructure as well as related regulations to be able to put the system into operation in the first quarter of 2027.

Regarding the general account model, VSDC leaders said that the management agency is currently coordinating with international organizations such as the World Bank, IAG and working groups of the Vietnam Capital Market Forum (VBF). This is to research a model suitable for domestic conditions, thereby meeting the requirements of foreign institutional investors. Mr. Son confirmed that the general account will be located at the Stock Exchange or a depository organization.

In addition to upgrade plans, at the event, Mr. Bui Hoang Hai, Vice Chairman of the State Securities Commission, also raised a number of solutions to develop the market. According to Mr. Hai, the Committee is coordinating with relevant ministries and branches to propose amendments to the Securities Law in the direction of improving efficiency. The new regulations will cut business conditions, administrative procedures and compliance costs in half.

At the same time, in order to increase supply to the market, management agencies will continue to promote equitization and divestment of state-owned enterprises. Ministries, departments and branches also reached consensus on FDI enterprises being offered initial public offerings (IPO) and listing shares on the stock exchange.

Mr. Bui Hoang Hai said that the management agency is also building a roadmap to introduce new products and services associated with the KRX system. In addition, the State Securities Commission is implementing two major projects, including a comprehensive market management and surveillance system project and a centralized data warehouse for the entire industry.