Vietnam gains Secondary Emerging Market status from FTSE Russell

According to the filing, FTSE Russell implemented Vietnam’s promotion to Secondary Emerging Market classification on 21 September. This step reflects acknowledgement of the country’s economic advances and the increasing sophistication of its capital market.

Decade of effort

Authorities point out that for close to ten years the nation has been tackling institutional and market-infrastructure challenges. The result demonstrates substantial collaboration between FTSE Russell and Vietnam’s regulators aimed at building a more advanced market capable of underpinning the nation’s long-range economic goals.

Inflows of capital to Vietnam are projected to increase. Compared with the Frontier Market group, the emerging market segment attracts far more investors who follow FTSE Russell benchmarks, bolstering both active and passive fund flows.

Vietnam’s official market-upgrade plan sets a target of 2030 to satisfy MSCI’s standards for emerging market classification and FTSE Russell’s requirements for Advanced Emerging Market designation.

International financial firms have issued congratulatory messages. Adena Friedman, Nasdaq’s chair and chief executive, described the development as a strong acknowledgment of Vietnam’s economic growth and its capital-market evolution.

Friedman remarked, “This milestone is about far more than a change in market classification,” Friedman said. “It is a powerful recognition of Vietnam remarkable economic progress and the significant development of its capital markets.”

Gokul Laroia, Morgan Stanley’s Asia CEO and co-head of Global Equities, noted that recent reforms have improved market access and boosted confidence among investors.

Loh Boon Chye, SGX Group chief executive, emphasized the importance for ASEAN, observing that more robust and integrated markets generate additional prospects for regional economies.

Gateway to deeper liquidity

The FTSE upgrade raises Vietnam’s capital market standards. On 18 September, the nation served as a gathering spot for leading global financial institutions and investment firms as it approached FTSE Russell’s key market-upgrade milestone.