FTSE has upgraded the Vietnamese stock market from "frontier" to "secondary emerging," subject to a further review and verification of progress in opening trading rights through international brokers (global brokers) before the official upgrade on September 21, 2026. Following FTSE's decision, SHS Securities Company noted that previous upgrade announcements for markets around the world such as Kuwait, Romania, and Saudi Arabia did not include such a condition before the upgrade date, making it highly likely that the Vietnamese stock market will be the first case where FTSE applies this mechanism.
FTSE's flexible approach demonstrates its recognition of the efforts of Vietnam's stock market regulators in developing the market.
In fact, within a short period, many important reforms have been implemented, including addressing long-standing issues, such as shortening the settlement cycle, simplifying procedures for foreign investors, and operating the new KRX technology system… Also, because improving the right to trade through international brokers in the Vietnamese market is not difficult, the possibility of officially upgrading the Vietnamese stock market from September 21, 2026 is certain.
Upgrading Vietnam from a frontier market to an emerging market according to the FTSE Russell Index is a significant milestone, helping Vietnam integrate more deeply into the global financial system. These immediate positive impacts include increased attractiveness for foreign investment after the upgrade takes effect; improved market liquidity and efficiency; enhanced image and economic standing of Vietnam in the region; and promotion of economic and business growth.
The FTSE upgrade decision marks the beginning of Vietnam's stock market's journey to "break through the barriers" (a metaphor for overcoming challenges). The next step is to fully meet the standards of MSCI, with its stricter regulations than FTSE, and maintain its emerging market status – as set out by the Prime Minister in Decision 2014/QD-TTg approving the plan to upgrade Vietnam's stock market by September 2025. The plan was approved during a visit to the UK by a delegation led by the Minister of Finance , which included meetings with FTSE regarding the upgrade and meetings with investment organizations there.
It can be said that, after many efforts, the Vietnamese stock market is preparing to enter the "gateway" of international capital. Upgrading to MSCI's criteria and improving the depth of the stock market are steps for the Vietnamese market to access a much larger volume of international capital than it currently does. Furthermore, the most important thing is not just the "label" as an emerging market (FTSE Secondary Emerging Market), but the awareness and vision of regulators and authorities regarding the role of the capital market, including the commitment and practical efforts to help the capital market develop more strongly, truly becoming one of the channels for mobilizing and allocating medium- and long-term capital for the economy. The determination and decisive actions of market regulators in recent times have been very convincing to rating organizations and the investor community. More importantly, the determination to upgrade the stock market is not simply a resolve or a single solution, but is part of the overall government's solutions to implement major policies in the Party's resolutions on socio-economic development for the period 2026-2030.
Confidence in a new growth cycle for the stock market, coupled with the goal of achieving high economic growth as directed by the Party and Government, is the driving force behind the development of the Vietnamese stock market. This provides an opportunity for Vietnamese businesses to access new sources of capital, increase their market capitalization, and improve the country's position and image on the global financial map.
Source: https://baodautu.vn/nang-hang-thi-truong-chung-khoan-tien-vao-cua-bien-von-quoc-te-d407978.html
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