Vietnam expected to pass FTSE Russell review as part of market upgrade process: analysts

FTSE Russell, a global index provider owned by the London Stock Exchange Group, announced in October that Vietnam was upgraded to secondary emerging market status, placing it alongside larger economies such as China, India and Indonesia in FTSE indices. 

The reclassification is set to take effect on September 21, 2026, subject to an interim review this month to confirm that market-access reforms are progressing.

The review will assess whether Vietnam has made sufficient progress in improving trading and settlement conditions for international investors, including access through global brokers.

Brokerage firm Vietcap said in a recent report the probability that Vietnam would fail the March review was zero, describing it as largely a procedural step to complete the evaluation process.

Vietnam's finance ministry issued Circular No. 08-2026, which took effect on February 3, introducing regulatory adjustments aimed at improving trading conditions and aligning the market more closely with international standards, Vietcap said.

According to the planned schedule, FTSE Russell's advisory committee on market classification is expected to meet on March 19, with the official results likely to be announced in early April.

The review is closely watched by global investors because an upgrade in market classification could attract more international investment into Vietnam's stock market.

Le Duc Khanh, director of analysis at VPS Securities, said the FTSE Russell review was the most important factor affecting market sentiment in early 2026.

He said foreign investors, who had been net sellers in Vietnam's stock market from 2023 to 2025, had recently shown signs of returning to some large-cap stocks.

Khanh said the selling pressure from foreign investors could ease in 2026 and potentially reverse as prospects for a market upgrade become clearer.

Nguyen Duc Hoan, chief executive of ACB Securities, said the March review was particularly important because FTSE Russell had been working with Vietnam's State Securities Commission, the Vietnam Exchange, and local stock exchanges on technical preparations related to a potential upgrade.

An upgrade could improve investor sentiment, increase capital flows, and boost market liquidity, Hoan said.

Several analysts expect Vietnam's stock market outlook in 2026 to remain positive, he added.