Vietnam joins emerging markets.

Vietnam has finished a long -awaited emerging market rating by FTSE Russell, in a step that is expected to open the way for billions of dollars to new capital to flow to its financial markets. The country’s shares will be included in the FTSE Russell’s secondary emerging markets category, which joins countries such as China, India and Indonesia. According to a statement issued by the agency, this classification will come into effect on September 21, 2026. “The reclassification of Vietnam reflects the implementation of major improvements in the market infrastructure,” David Saul, World Head of Policy at FTSE Russell, said in the statement. Vietnam was recorded for the first time on FTSE Russell’s watch list for the first time in September 2018 for possible reclassification, and the authorities have since implemented the livestock reforms to bring the market in line with world standards. The country will undergo a phased overview next March. FTSE expected the upgrading of the rating to attract foreign inflow of up to $ 6 billion to Vietnam. You may be interested in: Vietnam keeps its growth target unchanged despite the effects of duties. The performance of Vietnam shares in 2025. Vietnamese shares have seen net sale of foreign investors since the beginning of the year, and recorded monthly outflow in August. HSBC Holdings expected last month that the new classification would lead to inflow worth $ 3.4 billion, adding that about 38% of Asian funds and 30% of global rising markets funds already owned in Vietnam. “This amount of capital inflows will be sufficient to turn the trend of continuous net sold by foreigners over the past year,” said Tyler Manh Dung Nguyen, main market strategist at HO Chi Minh City Securities, pointing out that it is a turning point in the market. Vietnam’s most important UN index increased by 33% this year to reach new highs from Tuesday, powered by strong economic growth and optimism over an upgrade, with the purchase of retail investors. The index rose 3% on Wednesday before connecting its profits. The upgrade must bring new capital flow into the country, which can increase the value of the Vietnamese dong, says Brendan McKenna, a strategist at Wells Fargo in New York. He pointed out that the sustainability of this flow is essential, which describes the step as ‘definitely in the right direction for the economy and the currency’. Also read: Vietnam’s exports jump before the establishment of the US rates of Vietnam’s competition with larger countries, but not everything related to the upgrade is positive. From September, Vietnam had the biggest relative weight in the FTSE Emerging Markets Index at about 32%, followed by Morocco at about 20%. Moving to an emerging market index means competing with larger, more established countries. “The upgrading of Vietnam to the emerging market status by FTSE Russell is a watershed moment for the fastest rising economy of Southeast Asia, but the celebration comes with caution,” Hebei Chen, an analyst on Vantage markets in Melbourne, points to a rapid increase in the value of the dong and high valuation. The UN Index is currently trading at 12.2 times expected earnings, compared to the average during the past three years of 10.1 times, according to data compiled by Bloomberg. Among the reforms that Vietnam has implemented on the way to upgrade are the abolition of the right of public enterprises to place restrictions on foreign ownership under the ceiling allowed by law or under international agreements, in addition to abolishing the requirement for full conditions by foreign investors, which has a major obstacle to their participation. In May, the country launched the highly expected KRX trading system, a technological upgrade seen as the key to improving transparency and market infrastructure. Last month, the Vietnamese government set out a plan to meet the FTSE Russell standards this year and MSCI Inc. reaching emerging markets classification by 2030, a name commonly seen as a more important milestone that can open the door to greater foreign inflow. “There has been a lot of anticipation for this upgrade for some time, and most importantly, Vietnam has to continue its path of development,” says Nguyen Thomas, CEO of World Markets at SSI Securities Corp.