This initiative builds on the previous project, "Capacity Building to Improve Fairness and Transparency in the Vietnamese Stock Market", which JICA ran from 2019 to 2023.

Running until 2027, the new project will see JICA experts provide technical assistance to the SSC and three stock exchanges through targeted consultations and capacity-building initiatives. Key areas of focus include market supervision, securities market inspections, oversight of intermediaries, and ensuring that listings and public offerings adhere to international standards.

“This project will also raise awareness among listed companies about their responsibility to protect investors,” said Vu Thì Chan Phuong, chairwoman of the SSC.

She added, “With JICA’s extensive experience in developing Japan’s stock market, they are well-positioned to support Vietnam’s efforts to strengthen and modernise its own stock market in line with our strategic goals.”

The partnership aims to enhance the SSC’s ability to manage the market and protect the interests of investors, which is critical as Vietnam works towards a market upgrade in the near future. The JICA initiative is also set to accelerate the integration of Vietnam’s stock market into ASEAN and global financial systems.

Phuong further noted that by the end of August, the capitalisation of Vietnam’s stock market had exceeded VND7 quadrillion (approximately $280 billion), reflecting a 19 per cent increase since the end of last year. Foreign investors currently hold about $50 billion worth of shares, accounting for 17 per cent of the market's capitalisation.

Satoru Kawasaki, deputy commissioner for International Affairs at the Japan Financial Services Agency (JFSA), expressed Japan’s commitment to supporting Vietnam’s journey towards sustainable and transparent market growth.

"Japan stands ready to provide guidance to help Vietnam achieve sustainable economic development and a strong, transparent stock market," Kawasaki said.

JICA chief advisor Kojima Kazunobu also noted that foreign investors, particularly from Japan, are increasingly interested in Vietnam’s stock market.

"If major companies or emerging firms launch IPOs, we can expect significant inflows of foreign capital. However, the number of new listings on the Vietnamese stock market has been relatively limited in recent years," he observed.

Kazunobu pointed out that the most attractive entry point for foreign investors is through IPOs, but the current auction-based IPO system poses barriers for international participation.

"We hope to see the introduction of a new IPO method aligned with international standards, such as book-building or underwriting, to make it easier for foreign investors to participate," Kazunobu concluded.