Decision 2014/QD-TTg on Approving the Project to Upgrade the Vietnamese Stock Market

PRIME MINISTER

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No. 2014/QD-TTg SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness

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Hanoi, September 12, 2025

DECISION Approving the Project to Upgrade the Vietnamese Stock Market

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PRIME MINISTER

Pursuant to the Law on Organization of the Government dated February 18, 2025; Pursuant to the Securities Law dated November 26, 2019, amended and supplemented by Law No. 56/2024/QH15 dated November 29, 2024; Pursuant to Resolution No. 50-NQ/TW dated August 20, 2019 of the Politburo on orienting the improvement of institutions, policies, and enhancing the quality and effectiveness of foreign investment cooperation until 2030; Pursuant to Resolution No. 29-NQ/TW dated November 17, 2022 of the Central Executive Committee of the 13th Party Congress on continuing to promote industrialization and modernization of the country until 2030, with a vision to 2045; Pursuant to Resolution No. 59-NQ/TW dated January 24, 2025 of the Politburo on international integration in the new situation; Pursuant to Resolution No. 68-NQ/TW dated May 4, 2025 of the Central Executive Committee on the development of the private economy; Pursuant to Decree No. 29/2025/NĐ-CP dated February 24, 2025 of the Government regulating the functions, tasks, powers, and organizational structure of the Ministry of Finance, amended and supplemented in some articles by Decree No. 166/2025/NĐ-CP; Pursuant to Resolution No. 86/NQ-CP dated July 11, 2022 of the Government on developing a safe, transparent, and sustainable capital market to stabilize the macroeconomy and mobilize resources for socio-economic development;

At the request of the Minister of Finance.

DECIDES:

Article 1. Approve the Project to Upgrade the Vietnamese Stock Market (hereinafter referred to as the Project) with the following main contents:

I. GUIDING PRINCIPLES, OBJECTIVES

1. Guiding principles for building the Project

• Thoroughly implement the Party's viewpoints, policies, and lines, state laws, and resolutions of the National Assembly, Government, and Decisions of the Prime Minister regarding international economic integration, restructuring the economy and financial market, and developing the capital and stock markets;
• The upgrading of the stock market requires comprehensive solutions for the entire system. Stock market upgrading solutions must be part of the broader capital market development solutions, aligned with the goals in the project to raise the country's credit rating and the general socio-economic development orientation of the Party and State;
• Ensure the safety of the national financial system during the implementation of stock market upgrading solutions; stock market upgrading must be linked with appropriate solutions and policies to ensure safe and stable market development.

2. Objectives a) General objective Contribute to implementing the Party's and State's policies on developing the stock market as an important channel for medium- and long-term capital mobilization for economic development, improving the institution of a market economy managed by the State, and strengthening regional and international economic integration. b) Specific objectives

• Short-term objective: Fully meet the criteria for upgrading from frontier market to secondary emerging market of FTSE Russell in 2025; maintain the secondary emerging market ranking of FTSE Russell.
• Long-term objective: Meet the criteria for upgrading to emerging market of MSCI and high-tier emerging market of FTSE Russell from now until 2030.

II. TASKS AND SOLUTIONS

1. Group of tasks and solutions to achieve short-term objectives a) Group of tasks and solutions to meet the criteria for upgrading to FTSE Russell's secondary emerging market:

• Resolve the issue of "Requirement for advance payment for securities purchase" to remove the barrier of pre-trading margin requirements for foreign investors during the period when the Central Counterparty (CCP) mechanism has not yet been implemented for the Vietnamese core stock market.
• Enhance transparency regarding maximum foreign ownership ratios in various sectors, creating conditions for equal information access for foreign investors. b) Group of tasks and solutions to maintain ranking in the short term:
• Simplify procedures for registration and account opening for foreign investors, facilitating and reducing paperwork for opening indirect investment capital accounts.
• Strengthen information systems between custodian banks and securities companies to serve securities trading activities for investors (STP).
• Implement the Omnibus Trading Account (OTA) mechanism.
• Propose solutions to stabilize the foreign exchange market to respond to fluctuations in foreign investment capital flows.
• Enhance the capacity of trading and settlement systems to handle large trading volumes.
• Strengthen the supervisory capacity of the market regulatory authority (State Securities Commission) in terms of personnel and upgrading information technology systems for supervision. Promote coordination within the securities sector and inter-sectoral coordination between the Ministry of Finance, the State Bank of Vietnam, and the Ministry of Public Security in supervising stock market activities to better support each sector's management, enhance the effectiveness of crime prevention and suppression, and ensure security and system safety.

2. Group of tasks and solutions to achieve long-term objectives a) Group of tasks and solutions to meet the criteria for upgrading to FTSE Russell's high-tier emerging market and MSCI's emerging market:

• Review legal regulations on foreign ownership ratios to increase maximum foreign ownership limits and remove from the list those industries where foreign ownership restrictions are unnecessary.
• Develop advanced payment and clearing infrastructure to meet the mechanism for trading without 100% margin requirements and the Central Counterparty (CCP) mechanism.
• Research and apply a roadmap allowing securities lending and borrowing, and controlled short selling through mechanisms for selling securities pending delivery and intraday trading.
• Develop the foreign exchange market, allowing the implementation of risk hedging instruments in the foreign exchange market for indirect investment activities.
• Stabilize macro-fiscal policy through close coordination between fiscal, monetary, and other macro policies to maintain macroeconomic stability. b) Group of tasks and solutions to maintain ranking in the long term:
• Strengthen coordination among foreign exchange management and stock market regulatory authorities in regularly supervising the circulation of foreign indirect investment capital flows.
• Continue to modernize the trading system and securities trading settlement system on the stock market, enhancing trading system capacity to handle large trading volumes. Research the step-by-step application of new technologies for stock market operations.
• Perfect mechanisms, policies, and legal regulations in supervision and management, ensuring security and safety for the stock market and financial system. c) Group of support tasks and solutions for the long term:
• Enhance market liquidity, implement new order types and trading mechanisms on the stock market, especially those suitable for investor needs. Develop a system of market makers according to international practices.
• Enhance market transparency: Strengthen the quality control of auditing units and auditors; implement the project to apply international accounting standards; encourage large listed enterprises to publish financial reports according to International Financial Reporting Standards (IFRS); strengthen corporate governance according to Organization for Economic Co-operation and Development (OECD) standards for public companies.
• Develop, diversify, and restructure the investor base: Strengthen training and knowledge dissemination for domestic investors; encourage individual investors to invest through professional investment institutions (securities investment funds), aiming to develop institutional investors and funds, ensuring balanced and stable stock market development.
• Diversify the market's commodity base: Research and implement new products such as infrastructure development bonds, green bonds, new option contracts, new futures contracts, structured products, various types of depositary receipts, new types of securities investment fund certificates, green financial instruments, etc., suitable for the market's development level. Improve the quality of existing indices, diversify indices, and develop additional base indices as underlying assets for the derivatives market.

(Details of tasks and solutions are presented in the Appendix attached to this Decision approving the Project).

III. ORGANIZATION OF IMPLEMENTATION

1. Ministry of Finance a) Take the lead in organizing the implementation of the Project; build plans, roadmaps, and direct and supervise the implementation of the Project; organize evaluation of implementation; promptly report to the Prime Minister for consideration of adjustments and supplements to this Project to meet practical requirements. b) Regularly capture suggestions, recognize, and provide solutions to resolve difficulties related to the securities and stock market sector for foreign investors investing in Vietnam. Implement investment promotion programs to enhance the image of the Vietnamese stock market with the global investment community and large institutional investors worldwide. Strive for the support of foreign investors regarding the goal of upgrading the Vietnamese stock market. c) Coordinate with the State Bank of Vietnam to strengthen information exchange on supervising capital flows between the stock market and the money market, and foreign investment capital. d) Take the lead, in coordination with relevant ministries and sectors, to review and increase foreign investors' access to industries currently restricted by foreign ownership ratios. đ) Direct implementing units:

• Direct the State Securities Commission and Stock Exchanges to enhance management and supervisory capacity, improve the effectiveness of trading supervision, and promote inspection, examination, and market supervision to promptly prevent and strictly handle violations, protecting the legitimate rights and interests of market participants; coordinate with functional agencies to ensure the security and safety of stock market operations, prevent and suppress risks, dangers regarding security, safety, and crime on the stock market.
• Direct the State Securities Commission, Stock Exchanges, and Vietnam Securities Depository and Clearing Corporation (VDSC) to develop advanced trading, payment, and clearing infrastructure; have measures to ensure that trading, depository, and settlement systems operate smoothly, safely, and meet the requirements of increased trading when the stock market is upgraded. e) Monitor foreign investment capital flows on the Vietnamese stock market; strengthen coordination and information sharing with relevant regulatory agencies to respond to fluctuations in investment capital flows that may impact the stock market. g) Coordinate with media agencies to strengthen information provision to the public, propagate policies on securities and the stock market, including implementing solutions for upgrading the stock market.

2. State Bank of Vietnam a) Coordinate with the Ministry of Finance to review and propose amendments and supplements to legal and operational regulations in the banking sector (if necessary) to ensure a complete legal basis for commercial banks and foreign bank branches to participate in providing payment clearing services for securities transactions. b) Research simplifying the dossier, sequence, and procedures for opening and using payment accounts and indirect investment capital accounts for foreign investors conducting indirect investment activities in Vietnam, creating conditions for foreign investors to open accounts easily and conveniently, thereby further attracting investment capital into Vietnam. c) Research and develop plans to prevent the impact of large inflows and outflows of foreign investment capital on the stock market on the foreign exchange market. d) Coordinate with the Ministry of Finance (State Securities Commission) to handle difficulties in custodian banks providing facilities and services to foreign investors; research expanding financial instruments according to a suitable roadmap so that financial institutions and foreign institutional investors have a basis to perform risk hedging operations, contributing to the development of a complete financial system.

3. Ministry of Public Security a) Coordinate with the Ministry of Finance in ensuring the security and safety of stock market operations, preventing and suppressing risks, dangers regarding security, safety, and crime on the stock market. b) Coordinate with the Ministry of Finance and the State Bank of Vietnam in preventing risks of money laundering, cybercrime, and cross-border crime related to the Vietnamese stock market.

4. Ministries, ministerial-level agencies, agencies under the Government, and People's Committees of provinces and centrally run cities shall coordinate with the Ministry of Finance and relevant agencies to direct and participate in implementing contents related to this Project based on their state management functions and tasks as prescribed by law.

IV. BUDGET FOR IMPLEMENTATION

The budget for implementing the Project is allocated from state budget capital according to the decentralization of state budget management, socialization capital, and other legal capital sources as prescribed by law.

Article 2. This Decision takes effect from the date of issuance.

Article 3. Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairpersons of People's Committees of provinces and centrally run cities, heads of relevant agencies and organizations, and individuals are responsible for implementing this Decision.

Where received:

• Secretariat of the Central Party Committee;
• Prime Minister, Deputy Prime Ministers;
• Ministries, ministerial-level agencies, agencies under the Government;
• People's Councils and People's Committees of provinces and centrally run cities;
• Central Party Office and Party Departments;
• Office of the General Secretary;
• Office of the President;
• National Assembly Council and its Committees;
• National Assembly Office;
• Supreme People's Court;
• Supreme People's Procuracy;
• State Audit;
• Vietnam Fatherland Front Central Committee;
• Central agencies of political-social organizations;
• Government Office: General Secretariat, Deputy General Secretariats, Assistants to the PM, Director of the Portal of Electronic Information, Departments, Bureaus, subordinate units, Official Gazette;
• Filed: VT, KTTH (2 copies).

FOR THE PRIME MINISTER DEPUTY PRIME MINISTER

Ho Duc Phoc