Vietnam targets emerging market status and increased foreign investment

Vietnam is positioned as a key growth driver in Southeast Asia, bolstered by its transition toward an emerging market status. FTSE Russell has announced the inclusion of Vietnamese equities in its emerging markets index, effective September 21, 2026. This upgrade is expected to potentially attract approximately $6 billion in foreign capital as stocks are integrated into global indices through September 2027.

Economic indicators show significant transformation, with the country's GDP reaching $514.7 billion and surpassing $1 trillion when measured by purchasing power parity. The manufacturing sector remains a cornerstone of this growth, supported by major multinational corporations such as Samsung, Intel, and Foxconn. Foreign-invested enterprises currently account for roughly 70% of national exports.

Experts note that while the market upgrade is a critical milestone, long-term capital attraction will depend on internal factors including macroeconomic stability, legal frameworks, corporate governance, and credit ratings. Additionally, South Korean investment remains a vital component of the economy, with accumulated capital from South Korean businesses reaching approximately $95 billion.