Market structure

Vietnam: an emerging market in waiting

To qualify for emerging market status in MSCI’s suite of indices, and maybe FTSE's too, Vietnam needs to do more to attract foreign investors. A landmark new securities law comes not before time.

Vietnam, one of the most dynamic economies in Asia, hopes to advance to emerging market status from being a frontier market in the eyes of index compilers. But to stand any chance it first needs to enact a slew of reforms to satisfy foreign investors.

Morgan Stanley Capital Investment MSCI will announce the results of its latest annual review on June 25, but most investors and brokers consider the Southeast Asian country’s promotion unlikely for another couple of years, given how unseasoned they find some aspects of its capital markets and government-imposed limits on the foreign ownership of listed companies.

“Vietnam’s stock market needs at least...

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