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Status upgrade helps Vietnam securities market attract 4.5 bln USD

Status upgrade may help Vietnam securities market attract 4.5 billion USD

Status upgrade may help Vietnam securities market attract 4.5 billion USD
Status upgrade may help Vietnam securities market attract 4.5 billion USD ảnh 1A status upgrade may help the Vietnamese security market attract some 4.5 billion USD in investment.(Photo: VNA)

Hanoi (VNA) – A status upgrade may help the Vietnamese securitymarket attract some 4.5 billion USD in investment, according to experts fromthe Military Bank Securities (MBS).

Inthe MBS’s most optimistic scenario, the Morgan Stanley Capital International(MSCI), a global leading provider of research-based indexes and analytics, wouldput Vietnam on the watching list for potentialreclassification to the emerging market status in June 2020 and officially get theupgrade one year later at the earliest.

Large caps like VNM, VIC, VHM and HPG are expected to be added to the MSCI EmergingMarket Index.

Regarding momentum for theVietnamese stock market in 2019, MBS experts said that it comes from forecastof strong economic growth, robust profit expansion of local firms, and positivecapital flow into the Vietnamese market.

However, the market will face potential risks of US Federal Reserve’s interestrate hike and the US-China trade war.

In June, 2018, the MSCI decided tohold Vietnam’s status in the equity market in the Frontier Markets Index until2019.

According to MSCI, the promotion of the Vietnamese equity market would dependlargely on the improvement of eight items: foreign ownership limits, foreignroom levels, equal rights for foreign investors, foreign exchange marketliberalisation levels, information and market regulation English disclosure,clearing and settlement, and transferability.

Meanwhile, Vietnam was one of three countries added onto FTSERussell’s watch list for a possible future upwards reclassification last year.

Inits annual country classification review published in September 2018, theUK-based data service provider said Vietnam “is currently classified as aFrontier market and is being added to the watch list for possiblereclassification as Secondary Emerging.”-VNA
VNA

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