Vietnam stock market upgraded to secondary emerging status

The State Securities Commission of Vietnam announced the move on Wednesday morning, following FTSE Russell's interim review. 

The upgrade timeline aligns with a final review scheduled for March 2026.

Vietnam had been classified as a frontier market and placed on FTSE Russell's watch list in September 2018 due to restrictions in two key areas: delivery versus payment (DvP) and trade failure handling and costs.

Significant reforms have since been implemented. In late 2024, Vietnam's securities regulator introduced a non-prefunding model that allows domestic brokerage firms to guarantee funding for foreign institutional investors, removing the previous prefunding requirement.

The regulator also established a formal system to manage failed trades, addressing a critical gap in the market's infrastructure.

The FTSE Russell Index Governance Board recognized these changes and confirmed that Vietnam now meets all criteria under the FTSE Equity Country Classification Framework to be upgraded to secondary emerging status.

The September 2026 upgrade will be rolled out in phases to allow time for global brokers to deepen their engagement in Vietnam's market, an important factor in supporting index replication and foreign investor access.

FTSE Russell said it will continue to monitor market developments and gather feedback from stakeholders ahead of its March 2026 statement, when the final structure of the phased upgrade will be announced.

The State Securities Commission of Vietnam hailed the decision as a major milestone, noting that the new status signals a shift to a more advanced stage of market development.

It added that the upgrade will require continued reforms to broaden and deepen the market and pledged to work closely with FTSE Russell to ensure a smooth transition.