The transition is driving stricter enforcement of disclosure rules and corporate governance standards, with transparency becoming essential for listed companies seeking to attract capital.
Market cleanup accelerates
During the first six months of the year, the UPCoM market for unlisted public companies underwent a major cleanup. Hundreds of millions of shares were removed from trading, while nearly 200 companies were placed under trading restrictions, allowing transactions only during afternoon sessions.
On June 26, the Hanoi Stock Exchange suspended trading in the shares of LTG, NGC, RCD, HTP, SSF, LUT and RDP, mainly due to violations of information disclosure requirements.
Among the affected firms were Loc Troi Group (LTG), which had failed to publish its audited 2024 financial statements by the statutory deadline, and Rang Dong Holding (RDP), which was delisted after serious disclosure violations and the commencement of bankruptcy proceedings.
Earlier, six companies, including DTE, TQN, VKP and HPM, announced plans to leave the market after no longer meeting the legal requirements for public companies under Vietnam's Securities Law.
Another notable case involved Thong Nhat Hanoi Joint Stock Company (TNV), owner of the long-established Thong Nhat bicycle brand, whose more than 23.7 million shares stopped trading little more than a year after listing.
Not all departures from UPCoM reflected financial difficulties. Miza JSC (MZG) transferred its more than 116.5 million shares to the Ho Chi Minh Stock Exchange (HOSE), aiming to improve access to larger pools of domestic and foreign capital.
According to analysts at VPBank Securities (VPBS), the restructuring reflects a widening divide between companies with strong governance and transparency, which are better positioned to access capital markets, and weaker firms that risk being forced out.
Building a more transparent market
The State Securities Commission (SSC) has intensified oversight not only of listed companies but also of individuals and organizations offering unauthorized investment advice on social media.
The regulator has warned investors against relying on unverified recommendations that could result in financial losses and pledged to continue working with relevant authorities to crack down on illegal securities analysis and investment advisory activities.
Alongside stricter enforcement, the SSC is pursuing broader legal and technological reforms, including amendments to the Securities Law, the rollout of an integrated market surveillance system and the development of a centralized securities data platform to improve regulatory oversight and enhance market transparency.
The commission also plans to publish share ownership data by seven investor categories on its website. The initiative is expected to provide greater transparency on ownership structures, improve the assessment of free-float ratios and help address cross-shareholding concerns, factors closely monitored by international market index providers.
Nguyen Thi Hang Nga, chief executive officer of Vietcombank Fund Management (VCBF), said Vietnam needs a more mature investor base as the market develops. According to VCBF estimates, individual investors account for 75 percent to 80 percent of trading activity in Vietnam, a significantly higher proportion than in many developed markets, despite limited investment knowledge among many retail participants.
Vu Thi Chan Phuong, chairwoman of the State Securities Commission, said the dominance of retail investors has helped maintain market liquidity but has also made stock prices more volatile and sensitive to market sentiment.
The commission is implementing an investor education program for 2025-2030 that will use digital technologies and work closely with media organizations and market participants to improve financial literacy.
Nguyen Son, Chairman of the Vietnam Securities Depository and Clearing Corporation (VSDC), said investor education should remain a long-term priority.
He noted that even markets that achieved emerging market status years ago continue to provide regular training programs for investors, adding that better-informed investors with stable investment behavior would help build a healthier capital market and strengthen its role as a long-term funding channel for the economy.
