International experts discuss concerns about market dependence on a few large stocks.

The degree of concentration of Vietnam's stock market in a few large-cap stocks has been a topic of attention recently. In developed markets such as the United States, Australia, and other countries, concentration in a small number of large stocks also exists. The FTSE indices account for this to ensure stability, and the key issue is not whether concentration exists but how the market manages and assesses this risk. In index baskets including VN30, concentration has been calculated and controlled. For example, the financial sector currently accounts for a sizable share, around 27%, indicating that sector allocation is gradually diversifying. Compared with some regional markets such as Indonesia, the challenge is not only market capitalization size but also free-float and investor access. To reduce concentration risk, Vietnam should continue to deepen market depth by adding quality stocks to the index basket, thereby providing more choices for investors and promoting portfolio diversification. In attracting capital, especially large capital, liquidity remains the key factor. This requires a better market structure, a clearer role for market makers, and improved transparency and operational efficiency. As the market expands, investors will expect more investment products beyond traditional indices like VN30 and a broader set of indices and instruments. The current investor base is dominated by individual investors, about 90%, with institutions around 10%. However, experience from markets like China shows that this balance can shift over time; with standardization and greater transparency, institutional share could rise, and Vietnam could accelerate this shift by learning from Korea, Taiwan, and Indonesia. Upgrading the market not only enhances its image but also helps attract greater international institutional capital. An important lesson comes from Indonesia: Wanming Du, FTSE Russell's Asia-Pacific Policy Director, cautioned that data transparency, information integrity, and real ownership ratios have historically raised concerns. Hong Kong has also faced high ownership concentration with low free float, leading to price volatility. Therefore, for Vietnam, ensuring transparency of information, publishing ownership ratios, free-float, and investor access considerations is crucial for upgrade; these are key criteria in FTSE's evaluations. Indonesia's experience matters as Vietnam develops and upgrades; strengthening the legal framework, raising disclosure standards, and building transparent governance processes are essential to bolster investor confidence and attract long-term capital. Mai Chi