Vietnam's securities regulator is aiming to launch a central counterparty clearing (CCP) mechanism in the first quarter of 2027, a key step in strengthening market infrastructure and meeting international criteria for a stock market status upgrade.

The plan was outlined by Vu Thi Chan Phuong, chairwoman of the State Securities Commission (SSC), at a recent seminar on Vietnam's capital market development policies held in Singapore during the official visit of Party chief and President To Lam.

Phuong said Vietnam's stock market has maintained solid growth momentum, with total market capitalization reaching about $410 billion as of mid-May 2026. Average daily trading value on the Ho Chi Minh Stock Exchange (HoSE) stood at around $1.2 billion per session.

An investor watches Vietnamese stock prices. Photo by The Investor/Trong Hieu.

In recent years, regulators have introduced a series of measures aimed at improving market accessibility for foreign investors, including the implementation of a non-pre-funding trading mechanism, simplified procedures for opening indirect investment accounts, and the deployment of a new information technology system in May 2025.

Authorities have also focused on improving corporate governance standards, enhancing disclosure transparency and diversifying investment products.

Looking ahead, the SSC plans to continue refining the legal framework, developing modern financial products, expanding the institutional investor base, and improving the quality of retail investor participation.

Among its near-term priorities is the implementation of the CCP mechanism, which is regarded as a critical component of modern capital market infrastructure.

Under the model, the CCP acts as the central counterparty to securities transactions, helping reduce counterparty risk, improve market transparency, and strengthen overall financial system stability.

The mechanism is also one of the factors closely monitored by global index providers such as FTSE Russell and MSCI in their assessments of Vietnam's eligibility for an upgrade from frontier-market status to secondary emerging.

According to the roadmap previously released by the SSC, the CCP project includes multiple workstreams, ranging from completing the legal framework and establishing a dedicated clearing organization to developing technical systems and training market participants.

The regulator expects the CCP mechanism to become operational in Vietnam's cash equity market in the first quarter of 2027.

FTSE Russell on April 7, 2026 confirmed the reclassification of Vietnam from frontier to secondary emerging market status, effective from Monday, September 21, 2026, as the country "meets all criteria" for the status.

The announcement followed the organization's March 2026 semi-annual country classification review for equities for countries monitored by its global equity indices.

Prime Minister Le Minh Hung on Wednesday ordered the Ministry of Finance to submit a plan for developing the stock market and mobilizing investment funds in June. He made the request at a government meeting to discuss the socio-economic situation in May and the first five months of 2026.

The Prime Minister also asked the ministry to continue promoting the equitization of state-owned enterprises, develop key products for the International Financial Center, remove obstacles and support localities in attracting foreign investment, and resolve issues for large projects.