The Vietnamese stock market has been on a remarkable run, drawing the eyes of global investors and making headlines for its extraordinary performance. On October 6, 2025, the VN-Index soared nearly 50 points, a 3.02% leap that brought the benchmark to 1,695.5—just a whisker away from its historic peak. According to CafeF, this was the strongest one-day gain in about a month, and the trading session was marked by a sea of green as almost every stock on the board posted gains. The total matched value on the Ho Chi Minh City Stock Exchange (HoSE) exceeded a staggering 29,500 billion VND, underscoring the rush of money pouring into Vietnamese equities.
This surge did more than just lift spirits; it catapulted Vietnam’s stock market to the top of the world’s best-performing markets for the day. The timing of this rally is no accident. Investors are abuzz with anticipation as Vietnam approaches what many are calling a “historic” moment: the potential upgrade of its market classification by FTSE Russell. The global index provider is set to announce its September 2025 FTSE Country Classification report on October 8, 2025 (Vietnam time), right after the closing bell in the United States.
Vietnam has been on FTSE Russell’s watchlist for some time, and the consensus is that the country is highly likely to be upgraded from a Frontier Market to a Secondary Emerging Market. This would be no small feat. Such a move could open the floodgates for billions in foreign investment, fundamentally altering the landscape for Vietnamese companies and investors alike.
At a recent quarterly press conference, Deputy Minister of Finance Nguyen Duc Chi spoke candidly about the upgrade process. He emphasized that the government has rolled out a suite of reforms and policies aimed at making the market more sustainable and transparent. "I believe this process is being implemented very well and effectively," he stated, according to CafeF. "Although the final decision rests with the relevant authorities, I affirm that the State Securities Commission will continue to work closely with related agencies and international organizations to ensure that Vietnam’s stock market is evaluated objectively, fairly, and transparently."
Nguyen Duc Chi was quick to note that an upgrade is not the finish line, but rather the beginning of a new phase. "This is an important milestone for the development of the stock market to become even more transparent, supporting businesses in raising capital and thereby promoting the development of the capital market and the economy," he said. The optimism is palpable, and for good reason: an upgrade could help counterbalance the persistent net selling pressure from foreign investors, which has amounted to more than $9 billion from 2023 to 2025.
Brokerages are already mapping out what comes next. Vietcap Securities, for instance, is confident that FTSE Russell will deliver favorable news for Vietnam. After the announcement, index-tracking funds are expected to begin the process of opening accounts and registering trading codes for relevant funds. Vietcap projects that the implementation will be spread over four to five phases, with the first rebalancing of the index likely to occur as early as March 2026. International brokerages estimate that the upgrade could attract net foreign investment inflows of $6–10 billion in the most optimistic scenarios, with both active and passive funds participating. Passive funds alone are expected to bring in about $1.5 billion, while active funds could contribute anywhere from $1.9 to $7.4 billion, depending on Vietnam’s weight in the new index.
But that’s not the only big news shaking up Vietnam’s capital markets. On the same day as the rally, the Ho Chi Minh City Stock Exchange (HOSE) announced the launch of new rules for constructing and managing the Vietnam Dividend Growth Index (VNDIVIDEND). This new index is designed to spotlight companies with a proven track record of consistent and substantial dividend payments—a feature increasingly prized by both domestic and international investors seeking stability and reliable returns.
The VNDIVIDEND index will include between 10 and 20 stocks, all selected from the VNAllshare index based on a rigorous set of criteria. According to HOSE, eligible stocks must meet minimum thresholds for market capitalization and liquidity, as well as demonstrate positive net profit over the last four quarters. But the real kicker is the dividend payout requirement: stocks must have a dividend payout ratio of at least 80% (for those already in an index) or 100% (for newcomers), based on averages from recent years. If more than 20 companies meet these tough standards, only the top 20 by dividend ratio and liquidity make the cut. If there are fewer than 10, the list is topped up with the highest dividend payers until the minimum is reached.
This focus on dividends is not just theoretical. As reported by CafeF, the Vietnamese market has recently seen a surge in funds targeting high-dividend companies. At the end of 2023, the leading corporate investment fund DCBC under Dragon Capital rebranded itself to focus entirely on stocks of companies with a consistent dividend history. The revamped fund, now known as the DC Dividend Equity Fund (DCDE), has pledged to invest 100% of its assets in such companies across all sectors, steering clear of bonds altogether. This strategic pivot reflects a broader trend among investors who are increasingly drawn to the stability and predictability of dividend-paying stocks, especially in volatile markets.
HOSE has also been busy expanding its suite of indices to help investors track different segments of the market. Back in August 2025, it announced new rules for the Vietnam Modern Industry and Technology Index (VNMITECH) and the Vietnam Growth 50 Index (VN50 Growth), further broadening the toolkit for both institutional and retail investors.
All these developments point to a maturing market that is rapidly aligning itself with international standards. The reforms and innovations underway are not just about attracting foreign capital—though that is certainly a major incentive—but also about building a resilient financial ecosystem that can support Vietnam’s broader economic ambitions. The hope is that with greater transparency, better governance, and a wider array of investment options, Vietnam’s stock market will continue to thrive, even as it faces the inevitable ups and downs of global finance.
As the world waits for FTSE Russell’s decision, the mood among Vietnamese investors is unmistakably buoyant. The rally on October 6 was more than just a flash in the pan; it was a signal that confidence is running high and that the market is ready to take its place on the emerging market stage. Whether this optimism will be rewarded remains to be seen, but for now, Vietnam’s stock market is basking in the glow of its historic moment.
