FTSE Russell has officially upgraded Vietnam’s stock market from frontier to secondary emerging status. Illustrative photo.
The reclassification, announced early Wednesday, places Vietnam in the same category as China, India, Saudi Arabia, and Indonesia, reflecting significant improvements in market transparency, trading systems, and investor accessibility.
Anthony Le, Deputy Director of Institutional Brokerage at Vietcap Securities, said the upgrade signalled “a new era of growth potential” for Vietnam’s capital market.
“This result not only demonstrates the determination of the State Securities Commission to meet FTSE Russell’s standards but also opens access to a new group of global investors who were previously restricted from investing in Vietnam,” Le said.
According to international securities forecasts cited by Vietcap, net foreign capital inflows could reach between USD 6 billion and USD 8 billion, and potentially up to USD 10 billion under an optimistic scenario. These include both active and passive funds, with active funds expected to be the dominant type.
In a similar assessment, SSI Securities Corporation noted that recent policy breakthroughs, such as the launch of the KRX trading system and the introduction of non-prefunding transactions for institutional foreign investors, have significantly enhanced transparency, risk management, and operational efficiency.
While some technical requirements remain before Vietnamese stocks are officially added to the FTSE Emerging Markets Index in September 2026, SSI believes these outstanding issues are highly feasible to be resolved ahead of the review deadline.
Speaking to Dantri/Dtinews, Dr Tran Thang Long, Director of Research at BIDV Securities, noted that Vietnam had waited seven years for this upgrade.
“During that time, our market has expanded, become more transparent and deeply integrated with the global financial system. Being upgraded to emerging status not only brings an international title but also strengthens the sustainable development of Vietnamese enterprises by improving governance and access to long-term capital,” he said.
FTSE Russell will continue monitoring Vietnam’s progress and gather feedback from stakeholders ahead of its mid-term review in March 2026, to ensure the upgrade remains on track for September 2026.
The State Securities Commission described the upgrade as a significant milestone, marking “the robust growth and international integration of Vietnam’s capital market.”