[REVISION HISTORY]

Vietnam stock market upgrade and structural reforms

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2026-10-27 05:39 UTC → 2026-10-28 05:06 UTC · added ~~removed~~

Vietnam officially transitioned from frontier to secondary emerging market status under the FTSE Russell classification on 21 September 2026. This reclassification involves significant index restructuring and the phased inclusion of 27 Vietnamese stocks—including large-caps VCB, VIC, and VHM—into the FTSE Global All Cap Index through 2027. Following the upgrade, financial experts have provided varying estimates for capital inflows, with the World Bank projecting short-term foreign inflows of 5 billion USD, potentially accumulating to 25 billion USD by 2030. To support this transition, the Ministry of Finance and the State Securities Commission are advancing structural reforms. These include amending the Law on Securities, transferring more than 300 stocks from the Hanoi Stock Exchange (HNX) to the Ho Chi Minh City Stock Exchange (HOSE) by the end of 2026, and researching new trading mechanisms such as midday trading and wider price fluctuation margins. Trinh Son Hong, Acting Chairman of 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. By mid-October 2026, concerns emerged regarding the risks these reforms may pose. While widening price margins and implementing midday trading aim to increase market flexibility, experts warn they may lead to larger intra-session price swings. This poses a particular threat to margin traders, as sharp price drops could trigger forced liquidations. Analysts also note that updated mechanisms, including shortened settlement times, will require more stable technological systems and enhanced risk management to ensure market stability. Following the FTSE Russell upgrade, Vietnam is now targeting an emerging market status upgrade from MSCI. Finance Minister Ngo Van Tuan stated the market aims to become “more transparent, efficient, and aligned with international standards” to attract global investment.

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