On September 21, 2026, Vietnam will officially be upgraded from a Frontier Market to a Secondary Emerging Market by FTSE Russell. This upgrade will place Vietnam on par with major economies such as China, India, Egypt, and Indonesia, marking a significant milestone for the country's financial market.

FTSE Russell has announced that 27 Vietnamese stocks will be added to the FTSE All-Cap index, which includes large-cap, mid-cap, and small-cap stocks. Notable companies included are Vietcombank (VCB), Vingroup (VIC), and Vinhomes (VHM). If the FTSE Total-Cap index is considered, the number of Vietnamese stocks added could rise to 117, including 90 stocks classified as Micro Cap.

Additionally, six stocks—VCB, VIC, VHM, BID, HPG, and VPB—will also be included in the FTSE All-World index, which focuses on large-cap and mid-cap stocks globally. This upgrade will make Vietnam the 49th country to join the FTSE All-World index, a significant recognition of its growing market.

The transition to these global indices will occur in four phases, starting in September 2026 and concluding in September 2027. This phased approach aims to mitigate the impact on liquidity and allow time for capital flows to adjust to the new index allocations.

According to a recent report by Yuanta, the inclusion of Vietnamese stocks in the FTSE indices is expected to attract approximately $1.5 billion in foreign capital once the entire process is completed. However, the report also cautions that the initial influx of $150 million may not significantly impact the broader market, though it could have a more pronounced effect on stocks with higher weights or lower liquidity.

Investors are advised to monitor stocks with substantial expected buying value and significant absorption capacity for the incoming capital, rather than focusing solely on the total anticipated investment across the entire upgrade period. This strategic insight could help in navigating the evolving market landscape as Vietnam steps onto the global stage.