Vietnam's New Rules Boost Chances of FTSE Market Status Upgrade
Vietnam has made significant strides in meeting the requirements for an upgrade in its market status by FTSE Russell. The State Bank of Vietnam (SBV) has issued new regulations to facilitate foreign investing, with the review for the upgrade set for October 7.
The SBV has released two circulars, Circular 03/2025/TT-NHNN and Circular 25/2025/TT-NHNN, to streamline the process for foreign indirect investment (FII) activities. These circulars, along with Document No. 8292/NHNN-QLNH, aim to reduce the time taken to open accounts for foreign investors.
Circular 25 allows the use of electronic means and the SWIFT system for account opening and use. It also permits the use of various identity documents, not just passports, for this purpose. Furthermore, foreign investors can now authorize financial institutions to open, close, and use payment accounts without consular legalization. Banks and foreign bank branches are no longer required to monitor the validity period of identity documents or keep signature and seal samples.
The SBV's new regulations, along with Vietnam's progress in meeting FTSE's requirements, pave the way for a potential upgrade in the country's market status. FTSE Russell will consider this upgrade during its review on October 7, which could further boost foreign investment inflows into Vietnam.
