Vietnam stock market stays frontier in MSCI June review

On 24 June 2024 MSCI released the results of its Annual Market Classification Review 2026 and did not place Vietnam on the Watch List that precedes an upgrade from frontier to emerging market status. The decision follows the Global Market Accessibility Review issued on 19 June, which noted a series of reforms in Vietnam’s equity market – including a new global broker‑driven trading model, establishment of a central counterparty, English‑language disclosures and plans for a foreign‑exchange market – but also highlighted ongoing shortcomings. MSCI kept Vietnam’s 18 assessment criteria unchanged, with eight still rated as needing improvement, chiefly restrictions on foreign ownership, limited “closed‑room” access for foreign investors, and liquidity‑related issues. Experts said that MSCI’s standards are stricter than those of FTSE, and that an upgrade could bring passive foreign inflows an order of magnitude larger than current FTSE‑linked funds. They anticipate Vietnam could be reviewed again in June 2027, with a possible MSCI upgrade targeted for 2028‑29 if the highlighted constraints are addressed.