Vietnam Upgraded to 'Secondary Emerging Market' by FTSE Russell
Vietnam is poised for a significant boost in its financial landscape. The country has met all criteria for 'secondary emerging market' status under FTSE Russell's framework, and an interim review in March 2026 will confirm its inclusion in global brokers' access. This follows ADNOC Gas from the UAE being added to the FTSE Emerging Markets Index in September 2025.
The reclassification of Vietnam from 'frontier' to 'secondary emerging market' is scheduled for September 21, 2026, pending the March 2026 review. This upgrade recognizes Vietnam's market reforms over the past two years. The potential capital inflows could reach $5-6 billion, a substantial increase from the recent capital outflows of $8.5 billion over three years.
Vietnam's stock market currently trades at an undemanding valuation of 13x forward P/E. Following the upgrade, the VN-Index's valuation might offer 15-20% upside in the next 12-18 months. This positive outlook aligns with Vietnam's goal to expand its stock market to 120% of GDP by 2030 from the current level of around 75% of GDP.
Vietnam's market status upgrade by FTSE Russell signals a vote of confidence in the country's economic progress. The anticipated capital inflows and potential market upside present exciting opportunities for investors. As Vietnam continues to reform its market, it aims to become a significant player in the global financial landscape.
