Upgrading the stock market: Entering the "sea gate" of international capital

FTSE has upgraded Vietnam's stock market from "frontier" to "secondary emerging", with the condition that it will "review" again, along with checking the progress of opening trading rights through international brokers (global brokers) before officially upgrading from September 21, 2026. Immediately after FTSE's decision, SHS Securities Company commented that the previous upgrade announcement with markets around the world such as Kuwait, Romania, Saudi Arabia did not see any precedent of binding a condition before the upgrade date like that, so most likely, Vietnam's stock market is the first case where FTSE applies this mechanism.

FTSE's flexible approach shows recognition of the efforts of Vietnam's stock market management agency in market development.

In fact, in a short time, many important reforms, including long-standing issues, have been implemented, such as shortening the payment cycle, simplifying procedures for foreign investors and operating the new KRX technology system... Also, improving the right to trade through international brokers for the Vietnamese market is not difficult, so the possibility of officially upgrading the Vietnamese stock market from September 21, 2026 is certain.

Upgrading from a frontier market to an emerging market according to the FTSE Russell Index is an important milestone, helping Vietnam integrate more deeply into the global financial system. These are immediate positive impacts, including increasing the ability to attract foreign investment flows after the upgrade decision takes effect; improving liquidity and market efficiency; enhancing Vietnam's economic image and position in the region; promoting economic and business growth...

The FTSE's upgrade decision is the starting point for the journey of "crossing the gate" of the Vietnamese stock market. The next step is to fully meet the standards of the MSCI Organization with stricter regulations than FTSE and maintain the ranking of an emerging market - as the goal set by the Prime Minister in Decision 2014/QD-TTg approving the Project to Upgrade the Vietnamese stock market in September 2025. The project was approved right at the time when the working group led by the Minister of Finance was in the UK for work, including working with FTSE on the upgrade and meeting with investment organizations here.

It can be said that after many efforts, the Vietnamese stock market is preparing to enter the "sea gate" of international capital. Upgrading according to MSCI criteria and improving the depth of the stock market is a journey for the Vietnamese market to access international capital flows on a much larger scale than at present. Moreover, the most important thing is not only the "label" of emerging market (FTSE Secondary Emerging Market), but also the awareness and vision of the operator and management agency regarding the role of the capital market, including the commitment and practical efforts to help the capital market develop more strongly, truly as one of the channels for mobilizing and allocating medium- and long-term capital for the economy. The determination and drastic actions of the market management agency in recent times have been very convincing to the rating organization and the entire investor community. More importantly, the determination to upgrade the stock market is not simply a determination or a single solution, but is part of the overall solutions of the Government to implement major decisions in the Party's resolutions on socio-economic development in the 2026-2030 period.

Confidence in the new growth cycle of the stock market associated with the goal of achieving high economic growth under the direction of the Party and Government is the lever for the development of the Vietnamese stock market, an opportunity for Vietnamese enterprises to access new capital sources, increase capitalization scale, and at the same time improve the position and image of the country on the global financial map.

Source: https://baodautu.vn/nang-hang-thi-truong-chung-khoan-tien-vao-cua-bien-von-quoc-te-d407978.html