HSBC Forecasts Foreign Capital Inflow to Vietnam at $3.4–10.4 Billion Post-Upgrade

At dawn on October 8th, FTSE Russell announced the upgrade of Vietnam's stock market to Secondary Emerging Market status. This reclassification will officially take effect on September 21, 2026, following the mid-year review in March 2026.

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Mr. Gary Harron – Director of Securities Services, HSBC Vietnam

On this occasion, Mr. Gary Harron – Director of Securities Services, HSBC Vietnam delivered a congratulatory message to Vietnam for achieving this significant milestone.

“Congratulations to Vietnam on reaching a pivotal milestone – officially being upgraded from Frontier to Secondary Emerging market status by FTSE Russell. The formal upgrade, effective from September 21, 2026, following the March 2026 semi-annual review, underscores Vietnam’s rising international stature, demonstrating its resilience amidst short-term challenges. This new status is a testament to the collective efforts of the Government, regulators, and market participants.

For Vietnam, shedding the ‘Frontier’ label will significantly influence investor behavior and confidence, reshaping the market’s long-term economic trajectory and reducing reliance on any single trading partner. HSBC’s Global Research team estimates potential foreign capital inflows of USD 3.4-10.4 billion from active and passive funds post-upgrade.

As a longstanding partner of Vietnam’s capital market since its inception 25 years ago, HSBC currently serves as the custodian for approximately half of international institutional investors in Vietnam. Looking ahead, we are encouraged by the authorities’ plans not only to achieve MSCI’s Emerging Market status but also to foster the growth of the domestic fund management industry. We remain committed to supporting Vietnam and our clients in enhancing the market’s scale and capabilities, maximizing the benefits of today’s upgrade.”

Han Dong

– 13:34 08/10/2025

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