MSCI highlights reform gains while flagging barriers in Vietnam’s stock market

In the early morning of June 19, MSCI, one of the world's most influential index providers, released its Global Market Accessibility Review 2026, noting that Vietnam has continued to advance its capital market reform agenda with several important changes aimed at improving accessibility for foreign investors.

Attention will now turn to MSCI’s Annual Market Classification Review 2026, scheduled for release in the early morning of June 24.

This report is closely watched by investors as it has a more direct bearing on a market’s prospects for an upgrade or inclusion on an upgrade watch list.

In its latest review, MSCI stated that Vietnam continued to accelerate capital market reforms during the assessment period.

Among the most notable developments was the introduction of the Global Broker model, which allows foreign investors to access the market without opening a domestic trading account.

The reform has been one of the international investment community’s key expectations for many years, as it simplifies market entry procedures and brings Vietnam’s market practices closer to international standards.

MSCI also acknowledged the official establishment of the Central Counterparty Clearing (CCP) mechanism, which is expected to commence operations in early 2027.

Once operational, the CCP is expected to serve as a cornerstone of an internationally aligned clearing and settlement framework while supporting the full implementation of the non-prefunding trading model.

Another reform highlighted in the fresh report concerns the roadmap for English-language information disclosure.

Under the plan, the Ministry of Finance is implementing phased requirements for English disclosures from January 1, 2025, to January 1, 2028, with the objective of enhancing transparency and improving information accessibility for international investors.

Despite recognising recent progress, MSCI continued to identify several obstacles affecting market accessibility in Vietnam.

According to the report, foreign ownership limits in conditional business sectors still range from zero per cent to 75 per cent, affecting more than 10 per cent of the Vietnamese equity market’s capitalisation.

The issue of foreign ownership caps being fully utilised at many major listed firms was also highlighted. MSCI noted that more than 1 per cent of the MSCI Vietnam Investable Market Index remains affected by such restrictions.

Regarding equal treatment of domestic and foreign investors, the index provider pointed out that corporate information is not always available in English, while foreign investors’ access rights continue to be constrained by ownership limit regulations.

In the foreign exchange market, MSCI observed that Vietnam does not yet have an offshore currency market. In addition, onshore foreign exchange transactions remain linked to underlying securities transactions, thereby limiting flexibility compared with several other emerging markets.

With respect to clearing and settlement, MSCI noted that although the non-prefunding solution has already been introduced, the market still needs to await the full implementation of the CCP model in 2027.

The MSCI report also acknowledged improvements in off-exchange transfer transactions following recent regulatory adjustments. However, certain transactions still require the Vietnam Securities Depository and Clearing Corporation to review documentation before execution.

The new report primarily focuses on market accessibility conditions. Meanwhile, Vietnam’s prospects for a market reclassification upgrade will depend more heavily on the outcome of the Annual Market Classification Review 2026, which is scheduled to be published on June 24.

MSCI’s latest assessment suggests that Vietnam has taken another step forward in upgrading the country’s capital market infrastructure and regulatory framework. However, the index provider stressed that ongoing reforms will need time to demonstrate their effectiveness in practice.

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