Global funds eye Vietnam after stock market upgrade

The trend was highlighted at a recent meeting between leaders of the SSC and Fiona Bassett, CEO of FTSE Russell, a leading global index provider that has upgraded Vietnam’s stock market to secondary emerging-market status, a move widely seen as an important step in the country’s long-term integration into global capital markets.

Vietnam’s inclusion in FTSE Russell’s emerging-market index basket has been a key driver of renewed interest, the securities regulator said.

FTSE Russell noted that Vietnam’s Ministry of Finance issued Circular 08/2026 on February 3, introducing an additional trading mechanism that allows foreign investors to place orders via global brokerage firms without opening trading accounts at domestic securities companies.

The move is among the regulatory changes to be taken into account in FTSE Russell’s next market review, scheduled for March, with the results to be announced in April.

Bui Hoang Hai, deputy chairman of the SSC, said the stock market upgrade has significantly expanded Vietnam’s access to international portfolio capital.

“In recent times, major global investors such as Vanguard, BlackRock, UBS, and State Street have issued positive assessments of Vietnam’s market and stepped up engagement with regulators and leading domestic financial institutions,” Hai said.

Several of these investors have already completed internal procedures and cooperation agreements with Vietnamese partners, enabling them to deploy capital shortly after FTSE Russell’s upcoming market review, the commission said.

Market participants say international interest is increasingly translating into concrete preparation for investment.

One notable development is the launch of the Japan Vietnam Capital Fund, established by the Development Bank of Japan and SSI Securities Corporation, one of Vietnam’s leading financial services firms.

The fund is co-managed by the bank and SSI Asset Management (SSIAM), a subsidiary of SSI Securities Corporation.

SSIAM has also reported that its assets under management have reached US$1 billion, reflecting rising interest from overseas investors.

Nguyen Duc Thong, CEO of SSI, told Tuoi Tre (Youth) newspaper that investor interest is no longer limited to Japanese institutions, adding that funds and securities firms from Hong Kong and Singapore are also actively exploring opportunities in Vietnam as market infrastructure improves.

Nguyen Ngoc Anh, CEO of SSIAM, said capital inflows into Vietnam over the past two decades have largely come from East Asia, particularly Japan, South Korea, and Taiwan.

While interest from U.S. and European funds has increased, much of it has so far remained exploratory.

Recent moves by U.S. and European funds, she said, nonetheless suggest that Vietnam is edging closer to broader participation by global institutional investors.

Japanese investors, in particular, place strong emphasis on transparency and credibility and tend to favor consumption- and infrastructure-related industries that stand to benefit from Vietnam’s large population and rising public investment.

In the banking sector, they typically pursue long-term strategic positions rather than short-term financial gains.

Regarding the new fund co-managed with the Development Bank of Japan, Ngoc Anh said capital commitments are flexible, with the Japanese partner ready to disburse funds quickly when attractive opportunities arise.

The fund will focus on infrastructure and consumption-related businesses, widely viewed as pillars of Vietnam’s long-term growth.

She added that access to investment opportunities remains a key challenge, as foreign investors are often unfamiliar with auction-based processes and face legal and procedural barriers.

Broadening participation channels beyond auctions, she said, would be critical to unlocking foreign capital more effectively.

As Vietnam moves closer to full emerging-market status in global indices, market participants expect continued regulatory reforms and improved market access to play a decisive role in converting rising interest into sustained investment inflows.