Global index provider FTSE Russell is set to reclassify Vietnam to secondary emerging-market status on September 21, 2026. The upgrade follows eight years on the watch list for a potential shift from its frontier market classification.
This promotion will place the country’s equity market in the same league as those of China, India, Indonesia and the Philippines, potentially unlocking billions of dollars in foreign investment.
In its statement on Oct 7 (US time) after the close of the US market, FTSE noted that Vietnam has met all nine criteria required for the upgrade.
The government, the Ministry of Finance, and the State Securities Commission (SSC) have directed and resolutely implemented a host of activities aimed at upgrading Vietnam's stock market
However, the reclassification is subject to an interim review in March 2026 to assess whether sufficient progress has been made in facilitating access to global brokers, who act as counterparties to mitigate risk for foreign investors when trading in Vietnam. FTSE deems this progress as "essential to support index replication and to meet the needs of the international investment community".
A significant milestone
According to the State Securities Commission (SSC), this event marks a significant milestone in the robust development of Vietnam’s stock market, recognizing the sector’s comprehensive reform efforts in recent years in line with the Party and State’s policy to build a transparent, modern, and efficient securities market that adheres to the highest international standards.
These achievements have been made possible thanks to the strong leadership of the Government, the Prime Minister, and the Ministry of Finance; the close coordination of the State Bank and other relevant ministries and agencies; the active participation of stock exchanges, the Vietnam Securities Depository and Clearing Corporation (VSDC), market members, and media organizations; as well as the valuable support from the World Bank, FTSE experts, and global investment institutions.
The upgrade of Vietnam’s stock market to secondary emerging market status marks the beginning of a new stage of development, requiring deeper and broader reforms to achieve long-term goals in the years ahead.
As the state regulatory authority for securities and the stock market, SSC will continue to work closely with FTSE Russell to ensure the official transition proceeds in line with the established roadmap.
The SSC pledges to roll out holistic measures that maximize market access for both domestic and foreign investors. At the same times, the SSC will further improve the legal framework, modernize and digitalize market infrastructure, with the goal of developing Vietnam’s stock market into one that is increasingly transparent and efficient, thereby promoting deeper integration into the global financial system.
Vietnam’s rising global profile
Gary Harron, head of securities services at HSBC Vietnam, said: "We would like to congratulate Vietnam on this significant milestone with index provider FTSE Russell, confirming the long-awaited reclassification of the equity market from Frontier to Secondary Emerging status today."
The upgrade with effective from 21 September 2026 and subject to an interim review in March 2026 represents another example of how the country’s rising global profile can withstand near-term challenges.
The new status recognises years of coordinated efforts from the government, regulators and market participants.
For Vietnam, shedding the frontier label can profoundly reshape investors’ behaviour and confidence, altering the trajectory of its continued long-term economic development and reducing dependence on any single trading partner.
HSBC Global Investment Research suggests the potential for foreign inflows could eventually range between USD3.4bn to USD10.4bn from active and passive funds respectively following the inclusion. Having supported the market since the its inception 25 years ago as the first foreign bank to receive a custody license, HSBC today serves about half of all foreign institutional investors in Vietnam.
"Looking forward, we are encouraged by the plans of the authorities to both reach the MSCI Emerging market status and concurrently accelerate development of the domestic fund sector. We are committed to accompanying Vietnam and our clients in the journey of improving capacity and capability of the market, leveraging the benefits from the upgrade today. Let’s move forward, Vietnam!," Gary Harron said.
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