Vietnam's stock market will be upgraded from a frontier market to a secondary emerging market in September this year, following the latest mid-cycle review released by global index provider FTSE Russell on April 8.
Vietnamese equities will be gradually included in FTSE Russell’s global index system starting September 21, with the process expected to continue through 2027.
The decision reflects the Index Governance Board’s satisfaction with the country’s progress, particularly in implementing the global broker model—a key requirement for effective index replication.
The upgrade places Vietnam alongside major emerging markets such as India and China, and is expected to open the door to greater participation from passive investment funds in the local stock market.
The move follows a series of market-oriented reforms aimed at improving accessibility and transparency. These include the introduction of a non-pre-funding mechanism, a framework to handle failed trades, and expanded access for foreign investors through global brokerage channels—measures that help reduce transaction risks and enhance investor confidence.
Although Vietnam had already met the criteria for “secondary emerging market” status in a previous review, the latest assessment signals meaningful improvements in actual trading conditions and market operations. This marks a shift from meeting formal requirements on paper to achieving practical standards expected by international investors.
Google translate