Vietnam officially entered FTSE Russell’s Secondary Emerging Market category on September 21 after reforms to trading, settlement and foreign-investor access. The reclassification gives Vietnamese equities access to a much larger pool of international capital, but also puts them in direct competition with other emerging markets.
It described the upgrade as a milestone for Vietnam’s stock market after years of reforms aimed at attracting foreign investors.
FTSE Russell views Vietnam as a remarkable growth story in Asia and a long-term partner, adding it wishes to further deepen cooperation with the Vietnamese Government and market participants, said its CEO Fiona Bassett.
The upgrade of Vietnam’s stock market by FTSE Russell from Frontier to Secondary Emerging Market opens up new opportunities to attract capital and greater participation from international investors, said State Securities Commission (SSC) Chairwoman Vu Thi Chan Phuong.
The VNDIRECT Securities Joint Stock Company said that 2026 is the first year of implementing the five-year socio-economic development plan, opening what is considered the most ambitious policy cycle in Vietnam’s history.
After being upgraded from a frontier to a secondary emerging market by FTSE Russell, Vietnam’s stock market must urgently enhance corporate governance to strengthen its position, build investor confidence, and attract high-quality investment flows, said insiders.
The VN-Index has been on a remarkable ascent, consistently breaking new milestones, bolstered by a robust influx of capital and the announcement of a market upgrade from FTSE Russell.
The World Bank has projected short-term inflows of about 5 billion USD before and after the upgrade from both passive and active investors. In the long term, investment inflows may rise to as much as 25 billion USD by 2030, provided that Vietnam maintains strong reform momentum and macroeconomic stability.
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.
At 3 am (Hanoi time) on October 8, Vietnam’s financial community received a major announcement that global index provider FTSE Russell officially upgraded Vietnam’s stock market from “Frontier” to “Secondary Emerging Market” status.
The upgrade is expected to take effect on September 21, 2026, subject to an interim assessment in March 2026 to confirm Vietnam’s progress in improving market access through global brokers.
Vietnam could see 5-7 billion USD in passive inflows if its stock market status is upgraded from frontier to secondary emerging.
