Global asset management funds back Vietnam’s stock market upgrade

Vietnam could see 5-7 billion USD in passive inflows if its stock market status is upgraded from frontier to secondary emerging.

An investor monitors stock market movements. (File photo by VNA)
An investor monitors stock market movements. (File photo by VNA)

Hanoi (VNA) - Vietnam is on the verge of a historic reclassification in global equity benchmarks, with strong backing from leading asset managers in FTSE Russell’s September consultation, reported a September 29 article on marketinsider.net, a platform providing news, data, and analysis on stocks, commodities, cryptocurrencies, gold, and policy.

Accordingly, early voting indicates that around 85% of the 26 major funds consulted have endorsed Vietnam’s move from Frontier Market to Secondary Emerging Market status. Supporters include some of the world’s largest investors: BlackRock, Vanguard, and State Street, each citing greater liquidity and stronger regulatory alignment.

While Fidelity and PIMCO voted cautiously in favour, both highlighted the need to monitor the rollout of the KRX trading platform, scheduled for the second quarter of 2026. Only two small Asia-based funds opposed the upgrade.

The article pointed out that market liquidity has climbed 15% quarter-on-quarter, strengthening Vietnam’s case for accessibility.

If confirmed, analysts estimate Vietnam could see 5-7 billion USD in passive inflows, with active capital allocations to follow. This would position Vietnam as one of the fastest-growing markets in Asia for foreign portfolio investment and set the stage for a potential upgrade by MSCI in the longer term.

The VN-Index, representing the Ho Chi Minh Stock Exchange (HoSE), closed at 1,666.48 points, up 0.35% from the reference level./.

VNA

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