FTSE Russell to Upgrade Vietnam in September, Potentially Unlocking Billions After 35% VN-Index Rally
Updated
Updated · Fortune · Jun 16
FTSE Russell to Upgrade Vietnam in September, Potentially Unlocking Billions After 35% VN-Index Rally
3 articles · Updated · Fortune · Jun 16
Summary
September will bring Vietnam’s promotion to FTSE Russell secondary emerging-market status, a move that could channel billions of dollars in passive inflows into one of Asia’s fastest-rising markets.
8% GDP growth last year and a more than 35% gain in the VN-Index over 12 months helped drive the upgrade, while Vietnam’s $527 billion economy has overtaken Malaysia and the Philippines.
Washington also eased a major external risk by setting U.S. tariffs on Vietnamese goods at 20% in October, well below the 46% threatened in April 2025, protecting a trade flow worth more than $190 billion a year.
Hanoi is trying to turn that momentum into 10% annual growth by 2030 through private-sector reforms and huge projects including a $67 billion high-speed rail line and $25 billion in airport spending.
That ambition still faces hard limits: forecasters see 2026 growth closer to 6.2%-7%, inflation has hit 5.8%, and investors warn Vietnam needs roughly $160 billion-$200 billion more for infrastructure while labor, energy and talent shortages intensify.
Can Vietnam's ambition to become a high-tech hub survive its looming power shortages and massive infrastructure funding gap?
As its anti-corruption drive slows approvals, can Vietnam’s diplomacy still attract the crucial foreign investment it needs?
With its landmark U.S. trade deal now void, how will Vietnam navigate a new wave of proposed American tariffs?
Vietnam’s Stock Market Secures FTSE Russell Emerging Market Status: What It Means for Investors and the Economy
Overview
Vietnam's stock market has reached a historic milestone with its official upgrade to secondary emerging market status by FTSE Russell. This achievement is the result of over two decades of dedicated development and integration, involving close collaboration between FTSE Russell, Vietnamese regulatory bodies, and international organizations. The upgrade followed extensive consultations with a wide range of market participants, ensuring the market's readiness and alignment with global standards. This pivotal reclassification marks a new era for Vietnam's financial landscape, opening the door to greater international investment and deeper integration into the global economy.