The stock market has officially been upgraded, 6 billion USD of foreign capital will 'flood' into Vietnam

The upgrade reflects significant improvements in Vietnam's stock market infrastructure. (Source: VNE)

According to Bloomberg , this decision brings Vietnam into the same group as major economies in FTSE Russell's ranking list such as China, India, Indonesia and the Philippines.

The upgrade reflects significant improvements in Vietnam's market infrastructure, said David Sol, global head of policy at FTSE Russell.

Since being placed on the watch list in September 2018, Vietnam has implemented many comprehensive reforms to bring it in line with international standards.

FTSE Russell forecasts that the upgrade could attract up to $6 billion in additional foreign capital into Vietnam.

Meanwhile, HSBC bank estimates that about 3.4 billion USD will flow into the market. Currently, about 38% of Asian investment funds and 30% of global emerging market funds hold Vietnamese stocks.

However, the upgrade also poses some challenges. From a position of 36% in the FTSE Frontier index, Vietnam will have to compete with larger and more developed markets in the emerging group.

According to Dragon Capital's report, after the expected capital inflow, some investors, especially hedge funds, may take profits.

To achieve this milestone, Vietnam has implemented many important reforms such as removing regulations on foreign ownership ratio, removing pre-trade margin requirements for foreign investors and implementing the KRX trading system.

The government also aims to achieve emerging market status under MSCI's rankings by 2030, a milestone seen as more important and likely to attract greater foreign capital.

The VN-Index has risen 33% this year, hitting a record high thanks to strong economic growth and expectations of an upgrade.

Despite a record net foreign capital withdrawal in August 2025, domestic investors still helped the market have its strongest month of growth in more than 5 years.

Source: https://baoquocte.vn/thi-truong-chung-khoan-chinh-thuc-duoc-nang-hang-6-ty-usd-von-ngoai-se-do-bo-vao-viet-nam-330273.html