Emerging status a new chapter for Vietnam's stock market: scholar

By VNA October 8, 2025 | 08:30 pm PT

Investors looking at a screen at a securities company in Ho Chi Minh City. Photo by VnExpress/An Khuong

Vietnam’s first-ever inclusion in FTSE Russell’s list of Secondary Emerging Markets marks a historic milestone in its stock market development, said Associate Professor Dr Ho Quoc Tuan from the University of Bristol.

In an interview with the Vietnam News Agency in the U.K., Tuan underlined the significance of FTSE’s recognition that Vietnam has "fully met the criteria for Secondary Emerging Market status under its equity market classification framework."

He quoted David Sol, Global Head of Policy and Governance at FTSE Russell, as saying that the upgrade reflects Vietnam’s strong commitment to implementing essential market infrastructure reforms.

The scholar noted that FTSE is set to officially reclassify Vietnam from Frontier Market to Secondary Emerging Market on Sep. 21, 2026, following an interim review in March 2026.

Commenting on the impact of the reclassification, he said FTSE forecasts the move could attract an additional US$6 billion in foreign investment, while HSBC put that figure at about $3.4 billion. Nonetheless, some investment funds predict that certain foreign investors may take profits once the upgrade becomes official.

Citing Bloomberg, Tuan observed that around 38% of Asia-focused funds and 30% of global emerging market funds are currently invested in Vietnamese equities. Hence, both possibilities, an increase in holdings or short-term profit-taking, could occur after the announcement.

He emphasized that the upgrade is just the beginning of a long journey. While it may have a positive psychological effect and help offset the net foreign outflow of VND107 trillion (US$3.9 billion) recorded since the beginning of the year, Vietnam’s market growth, he said, will ultimately hinge on domestic capital inflows.