On 12 September 2025, Prime Minister Phạm Minh Chính signed Decision No. 2014/QD-TTg, hereby approving a comprehensive plan intended to elevate Vietnam’s stock market into a major channel for medium- and long-term capital mobilisation. The Decision sets out reforms to complete market mechanisms under State management, deepen international integration, and improve market infrastructure and legal frameworks to meet the requirements of global index providers.
The plan’s short-term objective is for Vietnam to satisfy all criteria needed to be upgraded from “frontier market” status to “secondary emerging market” status under FTSE Russell by end of 2025, with the intent to maintain that classification. To this end, the Government has identified several immediate measures including removing the requirement that foreign investors must pre-fund trades, enhancing transparency of foreign ownership limits across sectors, and simplifying and accelerating procedures for foreign investors to open trading accounts and register indirect capital.
By 2030, Vietnam aims to meet the criteria of MSCI for Emerging Market status and FTSE Russell’s classification of Advanced Secondary Emerging Market. The roadmap under Decision 2014 includes upgrading clearing and settlement infrastructure (notably via a Central Counterparty Mechanism, or CCP), introducing diverse financial instruments, improving market liquidity, and strengthening regulatory institutions.
From a legal and corporate advisory standpoint:
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Regulatory certainty: Decision 2014 mandates removal of specific barriers long identified by foreign investors (e.g. pre-funding requirement) which should reduce litigation or dispute risks as practices change.
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Transparency obligations for listed companies and sectors with foreign ownership will need to be reviewed: ownership caps and disclosures are likely to be subject to tighter regulation.
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Procedure simplification means legal departments of firms and brokers must update client onboarding, trading code registration, and account documentation to align with newer, leaner requirements.
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Infrastructure investment in market mechanisms like CCP will require legal safeguard frameworks—especially regarding obligations, liability, default rules, and oversight—compatibility with Securities Law and related regulations.
Risks and Challenges
Notwithstanding the plan’s promise:
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Implementation lag is possible, especially with complex reforms like setting up CCP, modifying ownership limits, or developing new product types.
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Consistency across provinces and regulatory bodies (Ministry of Finance, SSC, Banks etc.) is essential; divergences may cause uncertainty.
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Investor protections (especially retail investors) will need enhancement in tandem with growth in product complexity.
Decision 2014/QD-TTg marks a landmark policy for Vietnam’s capital markets. It signals that the Government not only aspires to meet international index standards but also is prepared to enact structural and legal reforms to do so. For domestic companies, foreign investors, advisors, and intermediaries, now is the time to align internal compliance, reporting, and governance frameworks with what will soon become law and market practice.
