Vietnam officially upgraded, Securities Commission notes important milestone

FTSE Russell announced its decision to upgrade Vietnam from a frontier market to a secondary emerging market, with an expected effective date of Monday, September 21, 2026, with a mid-term review taking place in March 2026.

Vietnam's stock market celebrates historic milestone - Photo: QUANG DINH

Market rating organization FTSE Russell has just announced that Vietnam's stock market has been officially upgraded from a frontier market to a secondary emerging market.

The information was released by the Securities Commission in the early morning of October 8, Vietnam time.

The remaining two criteria have been met.

Vietnam is classified as a frontier market and has been on the watch list since September 2018 for consideration of upgrading to a secondary emerging market.

When being put on the watch list, Vietnam did not meet two criteria "Delivery cycle (DvP)" and "method - cost of processing failed transactions", both of which were rated at "Restricted".

But by November 2024, the Vietnamese securities market regulator had implemented a non-prefunding trading model, allowing domestic securities companies to secure the necessary capital to support foreign institutional investors in executing securities purchase orders.

This has officially removed the pre-margin requirement for foreign institutional investors. In addition, a formal process for handling failed transactions has also been established.

The FTSE Russell Index Board (IGB) recognises the achievements of the Vietnamese market regulator in developing its market, and confirms that Vietnam now meets all the criteria to be classified as a secondary emerging market under the FTSE Equity Country Classification Framework.

The IGB Board confirms and is pleased to announce its decision to upgrade Vietnam from frontier market to secondary emerging market, with an expected effective date of Monday, September 21, 2026, with an interim review scheduled for March 2026.

State Securities Commission clearly states the roadmap

The Vietnam Securities Commission informed that this schedule is proposed to assess the progress in expanding the role of global securities companies - an important factor in simulating the index and meeting the needs of the international investment community. Upgrading Vietnam's market to secondary emerging market is expected to be implemented in stages.

FTSE Russell will continue to closely monitor market developments and encourage stakeholders to provide feedback ahead of the mid-term review in March 2026 to ensure the upgrade is implemented as planned in September 2026.

Details of the phased rollout plan will be published in the March 2026 announcement following consultation with FTSE Russell's Advisory Committees and market participants.

The State Securities Commission affirmed that this event is an important milestone marking the strong development of the Vietnamese stock market. At the same time, the upgrading of the Vietnamese stock market to a secondary emerging market is the beginning of a new development phase, requiring deeper and broader reforms to achieve long-term goals in the future.

As the state management agency for securities and the securities market, the State Securities Commission will continue to closely coordinate with FTSE Russell to ensure the official transition process follows the roadmap.

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Source: https://tuoitre.vn/viet-nam-chinh-thuc-duoc-nang-hang-uy-ban-chung-khoan-luu-y-cot-moc-quan-trong-20251008050713053.htm