VSDC Official: Vietnam’s Stock Market May Move Sideways for 3 to 9 Months After Upgrade
Vietnam’s stock market has mostly moved sideways or declined in the nearly two months since its FTSE Russell upgrade. VSDC Chairman Nguyễn Sơn says international funds need time to assess the market. Attracting larger, long-term investments will also require more quality listed companies, better trading infrastructure and stronger risk management tools.
Since FTSE Russell upgraded Vietnam’s stock market to secondary emerging market status on September 21, 2026, it has mostly moved sideways or declined for nearly two months, without establishing a clear upward trend. Nguyễn Sơn, Chairman of the Members’ Council of the Vietnam Securities Depository and Clearing Corporation (VSDC), said experience in other markets shows that a period of sideways trading or declines lasting 3 to 9 months after an upgrade decision is possible, as funds need time to study trading conditions and consider capital allocations. Nguyễn Hữu Huân also said large capital inflows should not be expected immediately after the upgrade.
Two speakers at a fireside chat on Vietnam’s capital market.（VietVance）
Nguyễn Sơn said Vietnam also needs to increase the supply of quality stocks available to international funds. He proposed promoting listings by eligible domestic private companies, successful foreign direct investment enterprises and large state-owned enterprises, while considering sales of state holdings in companies where the state does not need to retain a controlling stake. Improving demand for stocks alone is unlikely to attract larger international investments over the long term.
Trading conditions also influence how overseas investors allocate capital. Nguyễn Sơn said removing the requirement for foreign investors to have sufficient funds to cover the full value of an order before placing it was an important step. The market still needs to improve automated information exchange and balance reconciliation between custodian banks and securities firms, connect with global brokers and advance a central counterparty clearing mechanism. Listed companies also need to improve English-language disclosures and gradually adopt International Financial Reporting Standards.
A wide view of the fireside chat on Vietnam’s capital market.（VietVance）
On risk management tools, VN30 index futures have remained the main product in Vietnam’s derivatives market since it began operating in 2017. Nguyễn Sơn suggested studying index options and, over the longer term, options on individual stocks, alongside securities lending, covered short selling and regulatory mechanisms. He also mentioned non-voting depository receipts and currency risk hedging tools to help international investors manage portfolio risks.
Source: VietVance
