Stock market currently exhibits high trading activity
Vietnam's Stock Market: A Leap Forward with KRX System and International Cooperation
The Ho Chi Minh Stock Exchange (HSX) is undergoing a significant transformation, marking a new era of growth, product diversification, and internationalization. This transformation was evident during the official rollout of the KRX system, an advanced IT platform, on May 5, 2025.
The KRX system, managed by the HSX, aims to boost trading efficiency, reduce settlement time, and support a wider range of products in line with international standards. This platform unifies trading, depository, and clearing systems, paving the way for innovations such as new indices, ETFs, and other asset management products tailored to diverse investor groups.
The potential of cross-listed depository receipts to improve regional liquidity has been highlighted by Bernice Tan, vice president of the Singapore Exchange (SGX). In line with this, the VNX is planning to deepen cooperation with the SGX to share best practices and co-develop such receipts for listing in Singapore.
The VN-Index recently surpassed 1,570 points, driven largely by strong blue-chip performance. However, market analysts advise caution due to volatility. Despite this, the economy is on a solid recovery path, further supporting market momentum.
The capital market in Vietnam has become one of the three pillars of the country's financial system, alongside banking and insurance. By June 2025, HSX had over 1,600 listed companies, 82 securities firms, and 43 fund management companies, with more than 10 million securities accounts opened. The combined market capitalization of stocks and bonds reached close to 100% of Vietnam's GDP, marking substantial scale and liquidity growth. The average daily trading liquidity exceeded VND21 trillion (about $840 million).
Nguyen Thi Viet Ha, acting chairwoman of the HSX, believes that the KRX system could help build investor confidence, particularly among foreign investors. This sentiment is shared by many, as the HSX is preparing for a market upgrade by FTSE Russell to reclassify as a "secondary emerging market," which could unlock up to $6 billion in foreign capital inflows.
In addition to the KRX system, regulatory reforms are streamlining IPO and listing processes to improve post-IPO liquidity and attract more enterprises to the market. The planned rollout of additional indices aims to support product design by asset managers, expanding investment options available.
However, concerns have been raised about the lack of major new listings in the Vietnamese stock market since 2019. Lam, the minister of finance, has called for more high-quality listings from advanced manufacturing and tech sectors to better reflect the real structure of the economy.
The future development of the Vietnamese stock market is outlined in five priorities: market upgrade, financial literacy, institutional development, product diversification, and infrastructure modernisation. Seminars on depository receipts and a training programme on risk management were hosted by the State Securities Commission (SSC) and the SGX to enhance market infrastructure and internationalise the capital market.
In summary, the HSX is transitioning into a modern, more liquid, and diversified market with enhanced international appeal, supported by a technologically advanced trading platform, regulatory reforms, and expanding product offerings that cater to domestic and foreign investors alike. This transformation positions Vietnam as a key player in ASEAN’s growing investment ecosystem.
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- The KRX system, designed to boost trading efficiency and support international product standards, is expected to help attract foreign investment to the Vietnamese stock market, fostering a more robust financial environment for investing in stocks.
- As a result of the KRX system and ongoing regulatory reforms, Vietnam's stock market is positioning itself for growth, with the potential to become a significant player in the regional stock-market investing landscape, especially in terms of product diversification and market liquidity.
