FTSE Russell has unveiled its plans for Việt Nam's market transition from a frontier market to a secondary emerging market, set to take effect in September 2026.

 

This important classification shift reflects ongoing improvements in Việt Nam's financial infrastructure and investment framework.

 

The transition will occur in several phases, beginning with the country's removal from the frontier market tier during the annual review in September 2026. Vietnamese stocks will be included in the FTSE Global Equity Index Series (GEIS) concurrently, subject to an interim evaluation in March 2026.

 

Further details about each implementation stage will be announced in March 2026, following consultations with FTSE Russell's Advisory Committees and market participants. This process is designed to ensure that Việt Nam's market infrastructure meets international standards and enhances access through global investment funds. 

 

FTSE Russell's approach allows foreign institutional investors (FIIs) to execute trades via international brokers acting as partners. The initiative aims to align Việt Nam's market with global benchmarks, mitigate counterparty risks and bolster investor confidence through established relationships with reputable global financial intermediaries.

 

The report also outlined the expected weightings of Vietnamese stocks in various indices after the upgrade.

 

Specifically, Việt Nam is projected to account for 0.04 per cent of the FTSE Global All Cap index, 0.02 per cent of the FTSE All-World index, 0.34 per cent of the FTSE Emerging All Cap index and 0.22 per cent of the FTSE Emerging Index.

 

FTSE has established monitoring indices to simulate the effects of this reclassification prior to official implementation.

 

FTSE Russell has identified a list of 28 stocks likely to make it into the FTSE Global All Cap index. Some of these include prominent names such as Hoa Phat Group (HPG), Vietcombank (VCB), Vingroup (VIC), Vinhomes (VHM), Masan Group (MSN), Sabeco (SAB), Vinamilk (VNM), Dat Xanh Group (DXG) and others. This preliminary list is based on data as of December 31, 2024, and may be subject to change by the time of the official announcement. 

 

From September 2026, Việt Nam will be categorised under the Asia Pacific ex Japan ex China region in future reviews. The transition will continue to be monitored with respect to liquidity, scale and compliance with global standards.

 

This upgrade follows FTSE Russell's previous announcement on October 8, confirming Việt Nam's elevation from frontier to secondary emerging market status, effective September 21, 2026, pending the outcome of the upcoming review in March 2026.

 

FTSE Russell will closely monitor developments and welcome feedback from stakeholders related to the index before the interim evaluation classifies Vietnamese stocks in March 2026, ensuring that the reclassification is executed smoothly in September 2026.

 

Việt Nam's journey towards achieving this emerging market status began in September 2018 when it was placed on the watchlist for elevation.

 

At that time, it failed to meet criteria regarding delivery versus payment (DvP) processes and failed trade handling, both rated as restricted. In November 2024, Vietnamese market authorities implemented measures to address these issues.

 

The FTSE Russell Index Governing Board (IBG) has acknowledged the progress made by the country's market authorities in developing the market and confirmed that Việt Nam now meets all criteria required for the secondary emerging market classification according to the FTSE national classification framework. — BIZHUB/VNS

 

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