Vietnam to Disclose Detailed Shareholder Data in Market Upgrade Push

Vietnam's securities regulator is set to publish a detailed, seven-tier breakdown of share ownership in listed companies this month, a significant step aimed at improving market transparency and bolstering the country's bid for a market status upgrade, according to a recent UBS report.

The report, which followed meetings in Singapore between the State Securities Commission of Vietnam (SSC), international financial institutions, and investors, indicated the data will be released on the SSC's website. The disclosure will categorize ownership into seven segments: state ownership, strategic investors, insiders and related parties, major shareholders, cross-ownership holdings, restricted shares, and free-float shares. UBS noted that Vietnam has studied Indonesia’s approach to addressing challenges around free-float ratio disclosure.

This initiative is part of a wider push for what the Swiss bank described as measurable and credible capital market reforms. The report highlighted significant progress in market accessibility, with the time required for investors to open accounts slashed from a period of three-to-six months to just two days. Furthermore, most market transactions now operate under a non-prefunding mechanism, and trading value surged by approximately 50% in the first quarter of 2026. Progress in finalizing market regulations has also reportedly accelerated.

Regarding the country's market upgrade roadmap, UBS stated that for the first time, Vietnam has a formally approved plan endorsed by the Government. According to Vũ Thị Chân Phương, chairwoman of the SSC, FTSE Russell has confirmed Vietnam's promotion to Secondary Emerging Market status, effective from September 2026. The country has also set a 2030 target for inclusion in the MSCI Emerging Markets Index.

The government's roadmap, which has received prime ministerial approval, focuses on several core initiatives being implemented on a defined schedule. These include omnibus trading accounts, the gradual relaxation of foreign ownership limits, and the introduction of a central counterparty clearing (CCP) mechanism. The CCP rollout is considered the most critical near-term milestone, with authorities targeting an operational launch in early 2027.

Market participants emphasized several conditions for a successful CCP launch, including the continuation of the non-prefunding trading system, allowing margin requirements to be handled by securities firms instead of custodian banks, and maximizing netting efficiency in the clearing process. Beyond the CCP, regulators are also advancing other key infrastructure components like straight-through processing systems, securities borrowing and lending mechanisms, and bolstering the financial capacity of securities firms.

Vietnam’s stock market currently sees an average daily trading value of about US$1.2 billion, with total market capitalization reaching approximately $419 billion as of mid-May, according to data cited by UBS. At times during the first quarter of 2025, the market's trading value surpassed that of Singapore and Indonesia. The FTSE Russell upgrade decision has also generated stronger-than-expected interest from global index providers and investors.

Foreign ownership limits (FOLs) remain a key topic. Current regulations cap foreign stakes in commercial banks at 30%, and any change to this threshold would require legislative amendments rather than just administrative action. However, in a move viewed as a positive signal for market liberalisation, the State Bank of Vietnam has permitted four commercial banks involved in restructuring programs to increase their foreign ownership limit to 49%.

Regarding capital flows, the report noted that approximately US$2.5 billion in foreign capital has exited the market since the beginning of the year. This outflow was more than offset by an inflow of around US$3.5 billion from domestic sources. The bank observed that domestic retail and institutional investors successfully absorbed the supply from foreign selling, preventing significant market disruption. Discussions cited by UBS suggested these foreign withdrawals were primarily driven by global macroeconomic factors and exchange-rate movements, rather than concerns specific to Vietnam.