Vietnam plans to introduce stock index options in the first quarter of next year to deepen its capital markets and attract overseas investors following an FTSE Russell upgrade. Testing of contracts tied to the VN30 Index will occur in November and December, according to Vu Thi Thuy Nga, general director of the Hanoi Stock Exchange. The VN30 Index comprises the 30 largest stocks by market value on the Ho Chi Minh City Stock Exchange.
The new derivatives aim to lure more foreign capital after FTSE Russell upgraded Vietnam to secondary emerging-market status from frontier, effective last month. This reclassification is expected to broaden Vietnam’s access to global emerging-market investment, with inclusion in FTSE’s emerging-market indexes phased through 2027. Authorities expect the options to increase trading activity and improve liquidity, supporting broader market participation.
Nga stated the product is highly anticipated and aligns with more developed exchanges. Vietnam has undertaken reforms including removing pre-funding requirements for equity trades, advancing a centralized clearing system by 2027, and allowing foreign investors to trade via global brokerages. The country is also considering midday trading and wider daily price bands.
The VN30 Index gained 5.9% in August amid FTSE optimism before dropping 3.8% in September.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing