Vietnam stock market upgraded to secondary emerging market status

Vietnam's stock market has officially been upgraded from frontier to secondary emerging market status by FTSE Russell. This milestone is the result of synchronized reforms involving the Government, the Ministry of Finance, and the State Securities Commission.

Trinh Son Hong, Acting Chairman of the Ho Chi Minh City Stock Exchange (HOSE), stated that the exchange will focus on supporting listed companies to improve quality, transparency, and corporate governance to meet the higher standards of international institutional investors. HOSE aims to help businesses access capital and integrate more deeply into global markets.

Despite the upgrade, market analysts note that full capital disbursement into the FTSE Emerging Markets index will take approximately one year, with significant tranches expected through September 2027. While global interest rates remain high, sectors such as banking, oil and gas, insurance, power production, and seaports are identified as having potential due to attractive valuations and alignment with economic recovery.