Viet Nam's Stock Market Braces for FTSE Russell Upgrade on October 8
Viet Nam's stock market eagerly awaits FTSE Russell's upgrade evaluation on October 8, with BSC estimating an 80% chance of approval on October 7. The upgrade, expected to occur in phases over six to twelve months, could significantly boost the country's investment appeal in the capital market.
Viet Nam aims to achieve secondary emerging market status from FTSE by 2025 and MSCI recognition by 2030. This could attract tens of billions of dollars in foreign capital to the stock market. Decree 245/2025/ND-CP is designed to facilitate foreign investor participation, removing barriers and encouraging inflows to the capital market.
Historical trends suggest a surge in liquidity in the six months leading up to an upgrade announcement. Viet Nam's stock market is targeting an average trading value of US$2 billion per session from 2026 to 2030. Markets often rise in anticipation of a capital market upgrade, but a period of adjustment typically follows within three to six months after the announcement. In case of a downgrade, capital withdrawals from index funds could exert downward pressure on the capital market.
FTSE Russell's upgrade evaluation on October 8 is a critical step for Viet Nam's stock market. A successful upgrade could unlock significant foreign capital, aligning the market with MSCI standards and the Advanced Emerging Market category. Domestic capital inflow, supported by low interest rates and attractive valuations, remains a key driver of the capital market's development strategy.
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