According to FTSE Russell’s latest report, Vietnam has made notable progress, particularly in implementing a global brokerage model. Since the annual review last September, regulators have continued refining the legal framework and market mechanisms, creating more favorable conditions for the market’s development in line with international standards. The FTSE Russell Index Governance Board praised the pace of reforms and confirmed that the upgrade from Frontier Market to Secondary Emerging Market remains on track to take effect on September 21.
Bui Hoang Hai, Vice Chairman of the State Securities Commission of Vietnam, said: "FTSE Russell praised Vietnam’s progress in two key areas – enabling foreign investors to access Vietnam’s stock market through global brokerage firms, and finalizing the non-prefunding (NTF) trading mechanism for international investors."
With inclusion in global indices, Vietnam is expected to attract substantial capital inflows from both passive and active investment funds. Tran Thi Thanh Nhan, Head of Institutional Client Research at Maybank Securities, says foreign capital is unlikely to flow in all at once but will be disbursed in phases.
Nhan said: “In the short term, active funds are expected to increase allocations as they reposition portfolios ahead of official announcements. This will be followed by passive inflows from ETF funds, which will begin allocating capital according to index compositions. FTSE Russell has outlined a four-phase disbursement plan from September 2026 to September 2027. Total foreign inflows into Vietnam’s market are projected to reach between 6 and 8 billion USD over the coming years, driven largely by active funds. These inflows are expected to concentrate in stocks that meet index criteria, such as large market capitalization, high liquidity, and sufficient room for foreign ownership growth.”
Inclusion in global indices will enhance Vietnam’s visibility on the international investment map and help attract long-term capital. Moreover, it’s expected to create new opportunities for Vietnamese companies to access funding, expand their scale, and improve their competitiveness. As the market’s regulatory framework becomes more transparent and aligned with global standards, investor confidence in Vietnam is likely to strengthen further.
