London (VNA) – Vietnam’s first-ever inclusion by FTSE Russell in the list of Secondary Emerging Markets, alongside China, India, Indonesia, and the Philippines, represents a historic turning point and a new phase in the development of its stock market, according to Associate Professor Dr Ho Quoc Tuan from the University of Bristol (UK).
In an interview with the Vietnam News Agency in the UK, Tuan underlined the significance of FTSE’s recognition that Vietnam has “fully met the criteria for Secondary Emerging Market status under its equity market classification framework.”
He quoted David Sol, Global Head of Policy and Governance at FTSE Russell, as saying that the upgrade reflects Vietnam’s strong commitment to implementing essential market infrastructure reforms.
The scholar noted that FTSE is set to officially reclassify Vietnam from Frontier Market to Secondary Emerging Market on September 21, 2026, following an interim review in March 2026.
Commenting on the impact of the reclassification, he said FTSE forecasts the move could attract an additional 6 billion USD in foreign investment, while HSBC expects about 3.4 billion USD. Nonetheless, some investment funds predict that certain foreign investors may take profits once the upgrade becomes official.
Citing Bloomberg, Tuan observed that around 38% of Asia-focused funds and 30% of global emerging market funds are currently invested in Vietnamese equities. Hence, both possibilities, an increase in holdings or short-term profit-taking, could occur after the announcement.
He emphasised that the upgrade is just the beginning of a long journey. While it may have a positive psychological effect and help offset the net foreign outflow of 107 trillion VND (approximately 3.9 billion USD) recorded since the beginning of the year, Vietnam’s market growth, he said, will ultimately hinge on domestic capital inflows./.
