Vietnam's stock market upgraded, expecting a billion-dollar cash flow explosion

(Dan Tri) - Vietnam's stock market has been officially upgraded to a secondary emerging market. Many experts and securities companies expect a new era of growth potential for the Vietnamese market.

FTSE Russell announced that Vietnam's stock market has met all official criteria and been upgraded from a frontier market to a secondary emerging market.

This historic event was also positively evaluated by many securities companies and experts, who gave optimistic forecasts.

Mr. Anthony Le - Deputy Director of Institutional Brokerage Department of Vietcap Securities Company - commented that Vietnam is now classified in the same category as larger markets such as China, India, Saudi Arabia and Indonesia.

This result not only demonstrates the determination of the State Securities Commission to meet the criteria of FTSE Russell index but also signals a new era of growth potential for the Vietnamese market. The upgrade will facilitate access to the Vietnamese market for a new group of investors - investors who were previously restricted from investing in this country.

The representative of the above securities company cited forecasts from international securities companies that net foreign investment capital could reach 6-8 billion USD or even 10 billion USD (in a positive scenario). These estimates include capital flows from both active and passive funds, of which capital flows from active funds account for the majority.

Vietnamese securities upgraded, opening a new period of development (Photo: Dang Duc).

Sharing the same view, SSI Securities Corporation assessed that the upgrade is the result of the efforts and determination of the management agency and market members in developing the market, approaching international standards and attracting institutional investment capital.

Recent policy breakthroughs, together with the implementation of the KRX trading system and the permission for non-prefunding stock purchases by institutional foreign investors… have contributed significantly to improving transparency, risk management and operational efficiency.

Although there are still some issues that need to be met before Vietnamese stocks are officially included in the FTSE emerging market index basket in September 2026, SSI Securities believes that the issues under consideration are highly feasible to be implemented before the FTSE assessment deadline.

In fact, resolving these issues will create a favorable, transparent legal environment, better supporting the operations of market members.

According to the above securities company, upgrading Vietnam's market to the emerging market group is not a destination, but a starting point for deeper integration with the global financial system. This is the result of substantial coordination between FTSE Russell and Vietnamese management agencies on the journey towards a developed capital market, serving the long-term economic development goals of Vietnam.

Speaking to Dan Tri newspaper reporter , Dr. Tran Thang Long - Director of Analysis of BIDV Securities Joint Stock Company - said that Vietnam has been waiting for the upgrade for the past 7 years. During that time, the market has continuously grown, become more modern, more transparent and integrated more deeply with the world stock market.

Joining the emerging group not only brings international prestige, but first of all, it is for the sustainable development of Vietnamese enterprises, helping them operate systematically, transparently and access medium- and long-term capital.

A developed stock market is a place to absorb investment capital for Vietnamese investors, a driving force for economic growth and an extremely important part in the country's path to prosperity - Vietnam 2045.

Mr. Long also noted that after the decision to upgrade markets such as Qatar, Kuwait, Saudi Arabia, and the UAE, FTSE/MSCI began to include stocks of that country in the index basket, and passive ETFs were forced to disburse according to the proportion.

During this period, capital inflows were more stable, but did not explode immediately but were divided into several phases. For example, Saudi Arabia divided into 6 phases in 15 months, China A (China A-shares) divided into 4 phases, Qatar and Kuwait divided into 2 phases.

Therefore, even if Vietnam has just been upgraded, the market may “rest” or make technical adjustments before attracting real capital (T1). The sustainable upgrade effect will only come after the market meets sufficient liquidity, foreign room, and operating standards.

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 a March 2026 announcement following consultation with FTSE Russell's Advisory Committees and market participants.

The State Securities Commission (SSC) said that this event is an important milestone marking the strong development of the Vietnamese stock market. This result is also a recognition of the comprehensive reform efforts of the entire industry in recent times, following the Party and State's policy to develop transparently, modernly and effectively according to the highest international standards.

The upgrading of Vietnam's stock market to secondary emerging market status marks the beginning of a new development phase, requiring deeper and broader reforms to achieve long-term goals in the future.

Dantri.com.vn

Source: https://dantri.com.vn/kinh-doanh/chung-khoan-viet-nam-duoc-nang-hang-ky-vong-bung-no-dong-tien-ty-usd-20251008060455894.htm