Vietnam targets MSCI emerging market upgrade

Vietnam is working toward upgrading its stock market status to emerging markets by MSCI, following its recent upgrade from frontier to primary emerging market status by FTSE Russell. Finance Minister Ngo Van Tuan stated that the market aims to become more transparent, efficient, and aligned with international standards to attract global investment funds.

Key technical hurdles being addressed include improving free-float ratios and managing foreign ownership limits. Companies such as Petrolimex (PLX), BSR, and Masan High-Tech Materials (MSR) are reportedly making progress in these areas. While some sectors may require temporary adjustments to foreign ownership limits, experts suggest the impact on total market capitalization will be minimal.

Another critical requirement is the implementation of a Central Counterparty (CCP) mechanism. Current projections suggest the CCP could be deployed by the first or second quarter of 2027. If these reforms and infrastructure improvements proceed on schedule, the prospects for an MSCI upgrade could become clearer by mid-2027.