On August 21, FTSE Russell announced the results of its semi-annual review for the FTSE Global Equity Index Series. Accordingly, 27 Vietnamese stocks were included in the FTSE Emerging index group, effective from the trading session on September 21—marking Vietnam’s transition from "Frontier" to "Secondary Emerging Market" status according to the organization's assessment.

"The upgrade serves, firstly, as confirmation that our market has met the standards for a secondary emerging market. Secondly, it raises expectations for foreign capital inflows into the Vietnamese market. Data suggests that nearly 2 billion USD could flow into the market from various funds, representing a significant opportunity to enhance liquidity and increase foreign investor ownership in Vietnam's stock market," said CEO of Vietcombank Fund Management (VCBF) Nguyen Thi Hang Nga.

The 27 stocks included in the FTSE indices during this round is expected to unlock over 2.2 billion USD in passive investment capital from international funds. Capital flows will be allocated in phases, with the majority of the target weighting scheduled for 2027.

Crucially, the event marks the first time a significant group of Vietnamese stocks has entered a global index system, acknowledging the years-long reform journey of Vietnam's stock market.

Nguyen Thi Bich Nga, Deputy Head of the Department for Management of Fund Management Companies and Securities Investment Funds at the State Securities Commission (SSC), said: "The upgrade is not merely a target but a process of reform, enabling the stock market and the fund management to align with international practices. It serves as foreign investors’ recognition of the maturity achieved by both the stock market and the fund sector."

"Moving forward, the SSC will continue to implement reform programs to meet the upgrade criteria of major international organizations, such as MSCI. The core objective is to persist with reforms that foster the continued maturation of the stock market and the fund management industry," Nga added.

FTSE (Financial Times Stock Exchange) is specializing in the provision and management of global stock market indices, founded by the London Stock Exchange (LSE) and the Financial Times newspaper.

FTSE operates as a creator of financial indices, helping investors measure the performance and trends of stock markets within specific countries or regions.