Vietnam's stock market upgraded

The decision was announced by FTSE Russell in a periodic classification report released early this morning.

The expected effective date is September 21, 2026, following a mid-term review in March 2026. This review aims to assess whether Vietnam has made sufficient progress in improving access for global investors.

FTSE Russell said that previously, Vietnam had not met two important criteria, including “Delivery cycle (DvP)” and “Costs incurred related to payment error transactions”, both of which were assessed as limited.

By November 2024, Vietnam had implemented a trading model that allows foreign institutional investors to purchase shares without requiring sufficient funds (Non Pre-funding solution – NPS). In addition, a process for handling payment errors has also been established to perfect the market operation mechanism.

" The FTSE Russell Index Management Board (IGB) recognises Vietnam's progress in improving its market and confirms that Vietnam meets all the criteria for secondary emerging market status ," the announcement said.

IGB said it had considered the Market Classification Advisory Committee’s comments on restrictions on foreign investors trading in Vietnam. This is not a mandatory condition, but IGB said improving foreign access is essential to upgrading.

FTSE Russell said it will closely monitor developments and take feedback from stakeholders ahead of the March 2026 review to ensure the upgrade can take place half a year later. The detailed upgrade roadmap will be announced by the organization during the March 2026 review.

This is a historic milestone, concluding more than 10 years of comprehensive reform efforts of the Vietnamese stock market. Being recognized by FTSE Russell opens up opportunities to attract billions of dollars in foreign investment capital, opening the door for the Vietnamese stock market to connect more strongly with global capital flows.

According to securities companies, net foreign investment flows could reach 6-8 billion USD or even 10 billion USD (in a positive scenario). These estimates include both active and passive fund flows, with active funds accounting for the majority.

Data from the Vietnam Securities Depository and Clearing Corporation (VSDC) shows that in September, the domestic market added nearly 290,000 individual accounts - the highest level in the past year, bringing the total to 10.98 million units. The number of additional accounts mainly came from individuals, while organizations only had 105 additional accounts.

In the first nine months of the year, domestic individual investors increased by about 1.74 million accounts. By the end of September, the total number of securities accounts in the whole market reached more than 11.04 million units.

Chau Anh - Hoang Dung

Source: https://vtcnews.vn/thi-truong-chung-khoan-viet-nam-duoc-nang-hang-ar969878.html