This morning, the State Securities Commission of Vietnam (SSC) announced that at 3:00 a.m. Hanoi time, the global index provider FTSE Russell officially declared that Vietnam’s stock market has met all required criteria and has been upgraded from a frontier market to a secondary emerging market. The upgrade from frontier status will be effective on September 21, 2026, according to a statement.
According to the SSC, this milestone marks a significant step forward in the robust development of Vietnam’s securities market. It reflects the comprehensive reform efforts undertaken by the entire securities sector in line with the directives of the Party and the State, aimed at building a transparent and efficient capital market that adheres to the highest international standards.
This achievement is the result of strong and decisive leadership from the Government, the Prime Minister, and the Ministry of Finance; close coordination with the State Bank of Vietnam and other relevant ministries and agencies; the active participation of stock exchanges, the Vietnam Securities Depository and Clearing Corporation (VSDC), market members, and media organizations; as well as valuable support from the World Bank, FTSE experts, and global investment institutions.
The upgrade of Vietnam’s stock market to a secondary emerging market marks the beginning of a new stage of development, requiring deeper and broader reforms to achieve the country’s long-term strategic goals.
The State Securities Commission of Vietnam (SSC) affirmed that, as the national regulatory authority for securities and the stock market, it will continue to work closely with FTSE Russell to ensure the official transition proceeds according to the established road map.
The SSC is committed to implementing comprehensive measures to facilitate maximum market access for both domestic and foreign investors. It will continue refining the legal framework, modernizing and digitalizing market infrastructure, and promoting transparency and efficiency to advance Vietnam’s stock market toward greater global integration.
According to the FTSE Russell Index Governance Board (IGB), the decision to upgrade Vietnam from a frontier market to a secondary emerging market will take effect on September 21, 2026, following an interim review scheduled for March 2026.
This timeline is designed to assess progress in expanding the participation of global brokerage firms—an important factor in index replication and in meeting the needs of the international investment community. The upgrade process will be carried out in phases.
FTSE Russell will continue to monitor market developments closely and encourage stakeholder feedback ahead of the March 2026 interim review to ensure the upgrade proceeds as planned in September 2026. Detailed implementation plans for each phase will be announced in March 2026, following consultations with FTSE Russell’s advisory committees and market participants.
Both key factors had previously been assessed as limited. However, by November 2024, Vietnam had implemented a Non Pre-funding Solution (NPS) model, allowing foreign institutional investors to purchase equities without the need for full pre-funding. In addition, a settlement error-handling mechanism was introduced to further strengthen the market’s operational framework.
FTSE Russell acknowledged the significant progress made by Vietnamese regulators in improving market systems and confirmed that Vietnam has now met all the criteria required for classification as a secondary emerging market.
The FTSE Russell Index Governance Board (IGB) also reviewed feedback indicating that access to global brokerage services in Vietnam remains somewhat restricted. Although this is not a mandatory condition for the market upgrade, FTSE emphasized that such access is crucial for global investors to effectively replicate benchmark indices.
Therefore, improving connectivity and accessibility for international investors is considered essential to ensure the full implementation of the upgrade process.
FTSE Russell further noted Vietnam’s ongoing efforts to develop a trading model enabling foreign institutional investors to trade directly with global securities firms. This approach aligns with international best practices, reduces counter-party risks, and strengthens investor confidence through more reliable intermediary channels.
According to market analysts, Vietnam’s upgrade by FTSE Russell will be implemented in several stages. The organization will continue to monitor Vietnam’s progress and consult the global investment community ahead of the March 2026 review, ensuring that the upgrade proceeds as planned in September 2026.
