SGX and Vietnam Exchange explore depository receipt linkage

Proposed link would expand cross-border investor access.

Singapore Exchange (SGX) Group and Vietnam Exchange (VNX) have signed a memorandum of understanding (MOU) to explore a depository receipt (DR) linkage between Singapore and Vietnam.

The agreement was witnessed by Bui Hoang Hai, vice chairperson of the State Securities Commission of Vietnam, and Lim Tuang Lee, assistant managing director of capital markets at the Monetary Authority of Singapore (MAS). It builds on a 2024 agreement between SGX and VNX to share information and explore DR collaboration.

Under the latest agreement, the exchanges will assess the framework, operational requirements and market infrastructure needed for a DR linkage. The proposed linkage would allow investors in each market to gain exposure to selected companies listed on the other exchange through locally traded instruments.

The initiative is expected to expand investor access, increase visibility for listed companies and create additional capital-raising opportunities in both markets.

Hai said the agreement would strengthen economic and financial links between Vietnam and Singapore, deepen capital market connectivity and give Vietnamese companies greater access to Singapore's capital market and international investors.

Lee said the initiative would strengthen capital market connectivity and expand investment opportunities between the two countries.

SGX Group CEO Loh Boon Chye said stronger regional connectivity would make cross-border investing more accessible. “ASEAN is becoming increasingly important in global portfolios, supported by strong economic fundamentals and diverse growth opportunities.”

“Vietnam’s upgrade to emerging market status reflects the progress being made across the region,” he added. “Our collaboration with VNX broadens investment opportunities for companies and investors alike.”

VNX Chairman Luong Hai Sinh also said that DR pathways would create new channels for capital raising and investment.

“I see the development of DRs as a practical step to expand product offerings and facilitate cross-border capital flows,” Le Xuan Hai, CEO of VNX, added.

The MOU provides a framework for SGX and VNX to examine and develop DR products between the two markets. The exchanges will now hold technical discussions to identify pathways for implementation.