HÀ NỘI — Several of the world's largest financial institutions and asset managers have completed the technical preparations needed to invest in Việt Nam's stock market, reflecting growing international interest as the country advances its market upgrade agenda.

The update was shared by Hoàng Văn Thu, vice chairman of the State Securities Commission (SSC), at a seminar on July 28.

According to Thu, Việt Nam's stock market is progressing steadily on its market upgrade journey, while international funds, financial institutions and capital flows have been actively preparing to enter the market.

Large institutions such as Vanguard, Blackstone, UBS and Morgan Stanley have completed their technical preparations to invest in Việt Nam through securities firms including SSI Securities Corporation and Vietcap Securities (VCI). "This is a very positive signal for the market in the coming period," he said.

Thu added that the SSC was accelerating the issuance of Circular No. 08, which would replace three previous amended circulars. 

The new regulation would allow foreign investors to trade through global brokers, reducing administrative procedures and transaction costs while bringing Việt Nam's market practices closer to international standards.

With these reforms, he expects further improvements to the settlement system and more efficient utilisation of foreign capital. 

At the same time, proposed amendments to the Investment Law are intended to expand market access for investors and remove a number of long-standing barriers in the securities market.

Despite the positive outlook for foreign portfolio investment, participation by foreign direct investment (FDI) enterprises in Việt Nam's stock market remains limited.

According to the SSC, FDI companies first entered the stock market between 2003 and 2009. However, their presence has remained well below market expectations and the aspirations of the business community.

Statistics show that only 11 FDI enterprises have been listed or registered for trading since Việt Nam's stock market began operations. Currently, only 10 FDI companies remain listed or registered for trading among nearly 1,600 listed and registered companies across the market.

The scale of the FDI-listed segment also remains modest. As of the end of 2025, these companies had a combined charter capital of VNĐ12.63 trillion (US$480 million) and total assets of VNĐ44.7 trillion, accounting for just 0.15 per cent and 0.48 per cent, respectively, of the entire listed market.

The SSC also noted that the sector had seen little new development in recent years. Since 2017, four FDI enterprises had completed their conversion into public companies, but none proceeded to list or register for trading. 

The regulator identified several issues that continue to hinder FDI enterprises from joining the stock market.

These include companies that have received tax incentives or made commitments to local authorities, enterprises involved in PPP projects or sectors prioritised under Việt Nam's international commitments, businesses operating in industries subject to international treaty obligations, and investors selected through government tenders, whose contracts often contain specific conditions on investment and capital transfers.

Thu also highlighted the need to pay particular attention to restrictions on capital transfers between investors.

"FDI enterprises and consulting firms planning to support FDI companies in accessing the stock market should carefully review the relevant conditions and commitments applicable to these groups of enterprises," he said. — BIZHUB/VNS