Vietnam upgraded to Secondary Emerging Market by FTSE Russell

FTSE Russell has officially announced the reclassification of Vietnam’s stock market from a Frontier Market to a Secondary Emerging Market, effective October 8.

The upgrade is set to take effect on September 21, 2026, pending a provisional review in March 2026 to assess whether sufficient progress has been made in improving accessibility for global investors and meeting international investment standards. “The reclassification of Vietnam to Secondary Emerging Market status is expected to be implemented in multiple phases,” stated the FTSE Russell Index Governance Board.

FTSE Russell noted that it will continue to monitor Vietnam’s market developments closely and welcomes feedback from stakeholders before conducting the March 2026 review to ensure a smooth transition in September.

Previously classified as a Frontier Market, Vietnam had been on FTSE Russell’s watchlist for an upgrade since September 2018. The Index Governance Board acknowledged the significant strides made by Vietnamese authorities in strengthening the market and confirmed that Vietnam now meets all the criteria under the FTSE Equity Country Classification framework for Secondary Emerging Market status.

Commenting on the milestone, Nguyen The Minh, Director of Retail Client Analysis at Yuan Securities, described it as a historic achievement—reflecting more than two decades of progress and integration within Vietnam’s financial system.

The upgrade represents more than a technical adjustment by rating agencies such as FTSE Russell and MSCI; it is a testament to Vietnam’s sustained efforts to reform its legal framework, modernize trading infrastructure, and improve transparency to align with global best practices.

Once the reclassification takes effect, Vietnam’s stock market will become part of the investment portfolios of hundreds of global ETFs and active funds—particularly those tracking the FTSE Emerging Markets Index. This influx of capital is expected to enhance market liquidity, boost valuations, and elevate Vietnam’s position in the eyes of institutional investors worldwide.

Beyond immediate financial gains, the reclassification is anticipated to drive long-term structural improvements, raising both the quality and competitiveness of Vietnam’s capital market.