Hanoi: FTSE Russell has officially announced that Vietnam will be reclassified from frontier to secondary emerging market status, marking a major milestone for the country’s capital market after more than a decade of reforms. The announcement was made early on October 8 (Hanoi time), following the close of US markets on October 7, as part of the index provider’s September 2025 Country Classification Review. The upgrade is expected to take effect on September 21, 2026, subject to an interim assessment in March 2026 to confirm Vietnam’s progress in improving market access through global brokers.
According to Vietnam News Agency, this reclassification is expected to attract more foreign investors and capital inflow into Vietnam. The decision reflects the country’s significant efforts in enhancing its market infrastructure, transparency, and accessibility to foreign investors. The upgrade acknowledges the ongoing reforms in Vietnam’s financial market that have been implemented to meet international standards, aiming to boost investor confidence and promote sustainable economic growth.
The FTSE Russell’s decision is considered a significant achievement for Vietnam as it positions itself more prominently on the global economic stage. The reclassification from a frontier market to a secondary emerging market is anticipated to bring increased visibility and credibility to Vietnam’s market, potentially leading to a surge in foreign investments. This change is also expected to encourage further reforms and improvements within the Vietnamese financial sector to maintain its newly acquired status.
Vietnam has been working towards this upgrade by implementing a series of financial reforms and initiatives aimed at strengthening its market fundamentals. The upcoming interim assessment in March 2026 will be crucial in ensuring that Vietnam continues to meet the necessary criteria for market accessibility and operational efficiency, as set by global standards. The successful completion of this assessment will pave the way for Vietnam to fully integrate into the secondary emerging market category, opening up new opportunities for economic growth and development.