FTSE Russell has released its country classification update for October with Vietnam maintaining its position on the firm’s watchlist. It does, however, note that reforms have been made with respect to removing pre-funding requirements for foreign investors per a circular issued by the Ministry of Finance back in September. These reforms are designed to meet FTSE’s ‘settlement cycle’ and ‘settlement costs’ requirements.
FTSE Russell goes on to say that Vietnam still needs to reform its registration process for new accounts and to come up with a way for foreign investors to more efficiently trade stocks when foreign ownership ratios are nearing their limits.
For more context see: Vietnam’s Stock Market Upgrade Opportunity: Unpacked