Upgrading the stock market "Credit certificate" enhances the image of the capital market

On October 8, FTSE Russell announced that the Vietnamese stock market had met all official criteria and was upgraded from a frontier market to a secondary emerging market. According to experts, this is an important “certificate of confidence”, helping to increase the confidence of institutional investors and raise the image of the Vietnamese capital market on the international financial map.

Dr. Can Van Luc, Member of the Prime Minister 's Policy Advisory Council:
Recognizing reform efforts with the stock market

The FTSE Russell - The international rating agency's upgrading of Vietnam's stock market from frontier to secondary emerging is a recognition of the market's progress, and at the same time acknowledging Vietnam's reform efforts with the financial market in general and the stock market in particular, thereby contributing to increasing the attraction of international financial resources to the stock market.

This upgrade also motivates us to continue to believe in and strive to perfect institutions and other solutions to promote the development of the financial market as well as the stock market, becoming an important capital mobilization channel for the economy .

According to FTSE Russell, the upgrade will officially take effect from 21 September 2026, but depending on the outcome of the review in March 2026, that means we will have between 6 months -

1 year to continue perfecting documents, techniques, organizational model, and management and operation apparatus.

It should be noted that the decision to upgrade is temporary, while our efforts to improve the quality of stock market operations as well as the safe, sustainable and effective development of the financial market is a long-term process, requiring perseverance and persistence.

The Government issued Decision 2014/QD-TTg dated September 12, 2025 approving the Project to Upgrade the Vietnamese Stock Market, setting the goal of meeting the criteria for upgrading to MSCI's emerging market and FTSE Russell's advanced emerging market by 2030, with very specific tasks and solutions. We need to be steadfast with the solutions, promptly remove difficulties and obstacles for the market. Only then can we hope to realize the goal.

Director of Market Strategy, VPBank Securities Joint Stock Company TRAN HOANG SON:
A turning point in integration into the global financial system

The upgrade of the stock market is an important milestone, helping Vietnam integrate more deeply into the global financial system. From the experience of similar countries, such as Saudi Arabia and Kuwait, this upgrade will have four main positive impacts.

Firstly , it opens the door for large investment flows into Vietnam with the opportunity to attract billions of dollars from passive and active investment funds. We estimate the value of capital flows into the Vietnamese market to reach 3-7 billion USD in the period after the upgrade decision takes effect, of which 1.5 billion USD is from passive funds.

Second, it helps improve market liquidity and efficiency. Removing the pre-funding requirement will encourage institutional investors to participate, which can help the market increase daily trading value to 2-3 billion USD, making the market more liquid, more stable and less volatile.

Third, enhance Vietnam's economic image and position in the region; increase its attractiveness to large investors such as pension funds and ETFs; and at the same time strengthen its position in international trade negotiations and attract higher-quality FDI.

Fourth, promote economic and business growth. Accordingly, larger capital flows will support businesses to promote IPO activities, new listings to increase the amount of goods for the market and expand the scale of capitalization. Thereby, the stock market will become a more effective capital mobilization channel, contributing to the realization of the double-digit growth target. This is also a boost to help businesses promote reforms, raise operating standards, and improve corporate governance capacity.

CEO of TechProfit Joint Stock Company PHAN LINH:
The strongest ranking effect usually comes after 9 - 12 months

The upgrade from frontier to secondary emerging market by FTSE Russell is a significant milestone, as FTSE is the index provider used as a benchmark by hundreds of ETFs and global index funds. When Vietnam is upgraded, these funds are forced to restructure their portfolios, leading to passive capital flowing into the market. Reuters estimates that this could attract 3.5-5 billion USD of foreign capital, of which the first wave of ETFs could exceed 680 million USD.

Being recognized by FTSE is also a recognition of Vietnam’s extensive reform efforts. And when a global organization like FTSE Russell recognizes Vietnam as an emerging country, it is an important “certificate of confidence”, helping to increase the confidence of institutional investors and raise the image of Vietnam’s capital market on the international financial map.

In practice, when upgraded, foreign capital flows will increase significantly. After the upgrade announcement, the VN-Index reached a new peak, reflecting positive market expectations. When Emerging Markets funds officially include Vietnamese stocks in the index basket, the cash flow will be stronger and more stable.

At the same time, liquidity and stock valuations will improve, especially for large-cap stocks (blue-chips) - the main target of global ETFs. The gap in transaction costs and ownership fees for foreign investors will narrow, helping the market operate more efficiently.

On the business side, pressure from international investors will promote information transparency, international accounting standards (IFRS) and corporate governance according to ESG standards (environment, social and governance), thereby reducing the cost of capital, increasing corporate value and the ability to mobilize international capital.

At the macro level, when country risk is reduced, the Government can also borrow at lower costs, supporting infrastructure investment and sustainable growth.

Experience from Qatar, Kuwait, Saudi Arabia and the UAE shows that the period immediately after the upgrade announcement often sees a wave of technical profit-taking. Therefore, investors should have reasonable expectations: the strongest upgrade effect usually comes after about 9-12 months, when passive funds officially allocate capital. Sustainable impact can only be achieved when Vietnam's liquidity, foreign room and operating system fully meet the standards of FTSE and the international market.

Source: https://daibieunhandan.vn/nang-hang-thi-truong-chung-khoan-chung-chi-tin-nhiem-nang-tam-hinh-anh-thi-truong-von-10389650.html