Vietnam’s stock market upgraded to secondary emerging market by FTSE Russell, effective September 21, 2026

Vietnam’s stock market has been upgraded by FTSE Russell from a frontier market to a Secondary Emerging Market, effective September 21, 2026.

FTSE Russell cites progress on trading infrastructure

In its latest update, FTSE Russell said Vietnam has made sufficient progress in infrastructure and operating mechanisms, highlighting the implementation of the Global Broker model as a key factor supporting trading and index simulation.

Circular 08/2026/TT-BTC formally establishes this model and introduces improvements related to the no-margin requirement (NPF). The circular involves the regulatory agency, domestic and foreign securities firms, the depository bank and investors, which have agreed on the main operating components. Remaining work is focused on finalizing bilateral agreements between brokers.

“The FTSE Russell Index Board confirms satisfaction with the progress of implementing the global brokerage model... Accordingly, Vietnam remains slated for upgrade from frontier to secondary emerging market, effective from September 21, 2026,” the organization said.

Index classification and transition timeline

The decision places Vietnam in the same classification group as major global markets including China, Taiwan, India and Brazil.

FTSE Russell will conduct the allocation process in four stages to support a smooth transition and align with market capacity. The stages begin in September 2026 and are scheduled to complete in 2027, with index weights of 10%, 20%, 35% and 35% in the subsequent stages.

Estimated index weights and eligible stocks

FTSE Russell estimates Vietnam’s weights across key indices at approximately 0.037% in the FTSE Global All Cap index, 0.024% in FTSE All-World, 0.35% in FTSE Emerging All Cap, and 0.227% in the FTSE Emerging Index.

FTSE Russell also expects around 32 Vietnamese stocks to meet eligibility criteria for inclusion in the emerging market indices.

The official list of targeted stocks will be announced in the semi-annual review on August 21, 2026.

Expected capital inflows and market impact

Capital inflows are expected to follow the upgrade, which FTSE Russell and market participants describe as a milestone for Vietnam’s stock market—about eight years after it was first placed on the watchlist.

According to SSI Research, passive funds could deploy around USD 1.7 billion over 3–5 quarters, similar to the Saudi Arabia case. Including flows from active funds, total capital could reach USD 10.4 billion in an optimistic scenario.

SSI Research view on returns after upgrade

SSI Research also suggests that markets upgraded from frontier to emerging tend to deliver superior medium-term returns, driven by capital inflows and improved market quality.