On November 10, 2025, FTSE Russell—one of the world’s most influential index providers—unveiled its official roadmap for upgrading Vietnam’s stock market from frontier to secondary emerging status. This long-anticipated move, detailed in guidance documents and reports released over two consecutive days, marks a pivotal moment for Vietnam’s financial markets and signals a vote of confidence from the international investment community. The upgrade, if all goes according to plan, will become effective in September 2026, following a crucial preliminary review in March of the same year.
The path to this reclassification has been anything but straightforward. Since September 2018, Vietnam has sat on FTSE Russell’s watch list for emerging market status, held back primarily by two stubborn obstacles: the Delivery versus Payment (DvP) cycle and the method for handling failed trades—both previously rated as “Restricted.” However, as reported by VnEconomy, Vietnamese market authorities tackled these bottlenecks head-on in November 2024, implementing reforms designed to bring the country in line with international standards. Their efforts did not go unnoticed. The FTSE Russell Index Governance Board (IGB) formally acknowledged Vietnam’s progress, confirming in its latest assessment that all criteria for secondary emerging market status have now been satisfied under the FTSE classification framework.
So, what does this mean in practice? According to FTSE Russell’s November 10 and 11 announcements, Vietnam will be officially removed from the FTSE Frontier Index and included in the FTSE Global Equity Index Series (GEIS) at the time of the mid-year review in September 2026. But there’s a catch: before the upgrade is finalized, a preliminary assessment will be conducted in March 2026. This review will focus on the critical issue of investor access—specifically, whether foreign institutional investors (FIIs) can transact efficiently through global brokerage firms. As FTSE Russell explained, “the preliminary assessment in March 2026 will consider progress in allowing investor access through global brokerage firms, a core factor to help foreign institutional investors better replicate the index.”
This emphasis on global brokerage access is not just bureaucratic box-ticking. It’s a vital step toward aligning Vietnam’s market with international norms, reducing operational risks, and boosting investor confidence. The new model, which leverages reputable international intermediaries, is expected to help Vietnam “approach international norms, reduce risks, and increase investor confidence through transactions via reputable intermediaries,” according to FTSE Russell’s own guidance.
The transition won’t happen overnight. FTSE Russell has made it clear that the inclusion of Vietnamese stocks into the FTSE GEIS will be phased, with further details to be unveiled in March 2026 after broad consultations with advisory committees and market participants. The final list of eligible Vietnamese stocks will be released just before the all-important September 2026 review, and the process will be closely monitored throughout. To help markets prepare, FTSE Russell has already established a set of “watch lists” that simulate the effects of reclassification, offering a sneak peek at what’s coming down the pipeline.
So, which Vietnamese stocks are likely to make the cut? Based on data as of December 31, 2024, FTSE Russell has flagged 28 names as top contenders for inclusion in the FTSE Global All Cap Index. The list reads like a who’s who of Vietnam’s corporate sector: HPG, VCB, VIC, VHM, MSN, SAB, VNM, DXG, DIG, DGC, FRT, KDH, KDC, KBC, DPM, PDR, STB, SHB, SSI, HUT, VCI, VJC, GEX, EIB, PLX, VRE, VIX, and VND. However, as both FTSE Russell and VnEconomy caution, this roster may shift by the time of the official announcement, depending on liquidity, scale, and other eligibility criteria.
Once the September 2026 review is completed—results are expected to be announced on August 21, 2026—Vietnamese stocks will be classified within the “Asia Pacific ex Japan ex China” region. All Vietnamese stocks will initially be considered “not currently included” when FTSE Russell evaluates their eligibility, which means each must meet stringent requirements for liquidity, market capitalization, and compliance with global standards.
This upgrade is more than just a technical adjustment. It carries real-world implications for Vietnam’s economy and its place in global capital markets. After the upgrade, Vietnamese stocks are projected to account for 0.04% of the FTSE Global All Cap Index, 0.02% of the FTSE All-World, 0.34% of the FTSE Emerging All Cap, and 0.22% of the FTSE Emerging Index. These may sound like small numbers, but given the trillions of dollars tracking these indices, even a fractional inclusion can translate into substantial inflows for the Vietnamese market.
Meanwhile, as Vietnam prepares for this leap, its stock market has been anything but quiet. According to FiinGroup data cited by VnEconomy, the market’s post-tax profits soared by 41.8% year-on-year in 2025—though much of this growth stemmed from irregular income in leading sectors. When these one-off gains are stripped out, core profit growth slowed to 16.7% compared to the previous year, reflecting the more challenging environment following the market’s peak in late 2024. On the ground, individual investors have also been active sellers, with a net outflow of 467.4 billion VND on the day of the FTSE Russell announcement, including 599.1 billion VND in matched order net selling.
External factors have also been weighing on market sentiment. The new 20% U.S. withholding tax, effective from August 7, 2025 (down from 46% after negotiations), is expected to have a significant impact on Vietnam’s export-driven economy. With roughly 30% of Vietnam’s export turnover tied to the U.S. market, the new tax regime is a stark reminder of the global forces shaping Vietnam’s economic trajectory.
Vietnam’s journey from frontier to emerging market status has been years in the making. The country was first put on FTSE Russell’s watch list in September 2018, and since then, market authorities have worked steadily to address the technical hurdles standing in the way of an upgrade. The reforms of November 2024, which resolved long-standing issues with settlement cycles and failed trade handling, were the final pieces of the puzzle, earning Vietnam the coveted nod from FTSE Russell’s governance board.
As the world’s eyes turn to Vietnam’s capital markets, many investors and analysts are hopeful that this upgrade will usher in a new era of growth, transparency, and international participation. The phased approach, the careful attention to global standards, and the ongoing dialogue with market participants all suggest that FTSE Russell is committed to ensuring a smooth transition. For Vietnam, the next twelve months will be critical—a time to consolidate gains, address any lingering issues, and prove to the world that it is ready to join the ranks of secondary emerging markets.
With the September 2026 deadline now in sight, Vietnam stands on the cusp of a historic transformation, one that could redefine its role in the global financial system and unlock new opportunities for investors at home and abroad.
