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HOSE: Vietnam added to the watch list for possible reclassification as secondary emerging market by FTSE Russell On 26th September 2018, leading global index provider FTSE Russell officially added Vietnam to the Watch List to commence the engagement process prior to a possible reclassification as Secondary Emerging Market.
Accordingly, Vietnam securities market has met the FTSE Russell’s criteria for Secondary Emerging Market, including regulatory environment, infrastructure and quality of the capital market, and depository and clearing system. Over thorough market assessments conducted by the FTSE Russell Country Classification Advisory Committee and the FTSE Russell Policy Advisory Board, the Vietnam securities market was officially added to the Watch List. To be eligible for promotion as a Secondary Emerging Market, Vietnam has to continue to maintain and further improve its current market status. An annual schedule for determining country classification and Watch List changes will be announced in every September.
The inclusion of Vietnam to the FTSE Russell’s Watch List is a significant achievement of an ongoing development progress of Vietnam’s economy and capital market towards the best international practice. This shows the continuous efforts of the Vietnam’s Ministry of Finance, the State Securities Commission, the Hochiminh Stock Exchange and the Hanoi Stock Exchange and Vietnam Securities Depository to improve the securities market as well as the Vietnam’s economy as the whole.
The acknowledgement of the leading global index provider FTSE Russell will significantly enhance the position of national financial market to the investor community. Following this FTSE Russell’s action, it is expected for Vietnam’s market to have positive impacts on the ability to attract foreign investment, the liquidity of the market, and the quality of the listed companies as well as improvements in the regulation frameworks.
(Source: www.hsx.vn) HOSE
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