Việt Nam News

Global funds back Việt Nam’s stock market upgrade

September 29, 2025 - 19:02

Market Insider reported on September 29 that early voting shows around 85 per cent of 26 major global funds consulted endorsed Việt Nam’s upgrade.

An investor in HCM City Stock Exchange. An upgrade could bring in between US$5 billion and US$7 billion in passive inflows. — VNA/VNS Photo

HÀ NỘI — Việt Nam is moving closer to a long-awaited upgrade of its stock market as many of the world’s largest asset managers signal strong support for FTSE Russell to reclassify the country from a Frontier Market to a Secondary Emerging Market.

Market Insider reported on September 29 that early voting shows around 85 per cent of 26 major global funds consulted endorsed Việt Nam’s upgrade. Among the supporters are some of the world’s biggest investors, including BlackRock, Vanguard and State Street, which pointed to stronger liquidity and tighter regulatory alignment in the market.

Fidelity and PIMCO also expressed support, though with caution, stressing the need to monitor the rollout of the new KRX trading platform, expected in the second quarter of 2026.

According to Market Insider, Việt Nam’s stock market liquidity rose by 15 per cent in the last quarter, further strengthening its case for inclusion.

It also noted that Decree 245/2025/ND-CP has eased concerns over foreign ownership limits and currency risk, addressing two issues long viewed as obstacles for foreign investors.

FTSE Russell is scheduled to announce the outcome of its classification review after the US market closes on October 7. If approved, Việt Nam will join the FTSE Secondary Emerging Market Index in March 2026, a milestone that could reshape capital flows into one of Southeast Asia’s fastest-growing economies.

Analysts cited by Market Insider estimate that an upgrade could bring in between US$5 billion and US$7 billion in passive inflows, with further allocations from active funds to follow.

HSBC noted that such a move would automatically add Việt Nam to indexes including FTSE All-World, FTSE EM and FTSE Asia, prompting passive funds to buy Vietnamese stocks or ETFs.

Việt Nam’s Finance Minister told Reuters on September 19 he was “pretty confident” that the upgrade “would be confirmed next month”, reflecting optimism that the country is on the brink of a historic reclassification in global equity benchmarks. — BIZHUB/VNS

Tags market upgrade FTSE Russell

PM pushes for swift progress on China-linked railway projects

Economy

Cần Thơ to develop five major industrial and urban projects covering 4,200ha

Economy

Vietnamese rice remains steadfast amid world market fluctuations

Economy

Khánh Hòa firm ships sea grapes to global market

Economy

Sacombank a fixture in Việt Nam’s Top 50 Best-Performing Companies

Economy

State budget revenue rises nearly 28% in first nine months

More on this story

Economy

Limited investment opportunities in Huế’s real estate market

From being selected by the National Assembly as a pilot city for special mechanisms and policies under Resolution 38, to officially becoming a centrally run city in 2025, Huế is entering a new growth cycle that is drawing strong investment inflows.

Economy

From finance to tech founder: A Vietnamese teenager revolutionising U.S. restaurant permits

When a young Vietnamese teenager steps off a plane at JFK Airport, carrying nothing but ambition and a suitcase, the American Dream feels both within reach and yet distant. The journey from immigrant newcomer to Wall Street analyst to tech founder is rarely a straight line, but for those who navigate it successfully, the experience becomes a powerful blueprint for lifting others along the way.

Economy

Corporate bond activity soars in realty sector in August

The real estate sector led this surge, issuing over VNĐ22.1 trillion, an increase of 295 per cent from July and 202 per cent year-on-year.

Economy

Domestic sugar industry faces pressure from imports of corn-based liquid sugar

Analysts noted in September 2025 that sugar imports into Việt Nam had increased, with trading activity improving compared to previous periods.

Economy

Finance Ministry allows single football betting trial

The Ministry of Finance has proposed allowing one enterprise to pilot international football betting.

Economy

HCM City’s mooncake market turns ‘green’ as consumers shun unregulated products

This year, the spotlight is on health, sustainability, and food safety as consumers embrace a “green” trend while turning away from unregulated homemade products.

Economy

Việt Nam turns the tide with strong trade surplus

The country recorded a high surplus of the current account balance, which reached US$8.72 billion in the second quarter of 2025, an increase of 120 per cent compared to the first quarter of 2025.

Economy

Control over temporary import and re-export to be tightened

The Ministry of Industry and Trade is preparing a decree to replace Decree No 69/2018 on foreign trade management with stricter provisions on temporary imports, including a maximum 60-day storage period for temporary imports in Việt Nam.

Economy

Small firms, household businesses to get support in shift to revenue-based tax

The Ministry of Finance is drafting a decree to implement the National Assembly’s resolution on promoting private sector development, including measures to provide free digital platforms and shared accounting software for SMEs, household businesses and self-employed individuals.