First Read: Vietnam Equity Strategy "Positive trajectory in capital mark..."

Research evidence excerpt

First Read: Vietnam Equity Strategy "Positive trajectory in capital mark..."

Global Research

4 June 2026ab

First Read

Equity StrategyVietnam Equity Strategy

Positive trajectory in capital markets reform Vietnam

[ERRATUM] Permada Darmono Analyst

permada.darmono@ubs.com

+65-6495 3137

Positive reform momentum Trang Nguyen

We attended a Vietnam capital markets day hosted by the State Securities Commission Analyst

trang-za.nguyen@ubs.comof Vietnam (SSC). The Chairwoman of SSC, Madam Phuong, shared remarks about

+65-6495 2495

Vietnam's capital market developments. There was also a panel discussion with speakers

from SSC, Blackrock, Morgan Stanley, HSBC, and SSI. Our key takeaways are: 1) The

capital market reforms are real, measurable and credible with observable improvements

in shortened account opening times (3-6 months to 2 days), majority of trades executed

on a non-prefunded basis, ~50% increase in trading volumes in Q126, and faster

regulatory developments; 2) A well-designed central counterparty clearing (CCP)

implementation is the single most important near-term milestone which is targeted to

be operational by early 2027 with three red lines for a successful CCP - no backtracking

of non-prefunding progress, margin calls should flow to brokers not through custodians,

and maximize netting efficiency; 3) Other important required infrastructure include

straight through processing (STP), omnibus accounts (OTA), stock borrowing and

lending (SBL) and sufficient broker balance sheet depth. Vietnam capital market's

average daily traded value (ADTV) now stands at ~US$1.2bn with a market cap of ~US

$419bn as of mid-May 2026. At points in Q325, Vietnam's turnover exceeded that of

Singapore and Indonesia according to one panelist.

MSCI EM inclusion targeted for 2030