Ms. Wanming Du, Director of Index Policy, APAC, at FTSE Russell
Over the past two years, FTSE Russell has collaborated closely with Vietnamese regulators, witnessing significant reforms aligned with international standards. These include the adoption of non-pre-funding trading and enhanced failed-trade handling procedures. We also acknowledge Vietnam’s detailed roadmap for future developments, such as implementing a Central Counterparty Clearing mechanism by 2027 and streamlining account-opening processes to facilitate foreign investor participation.
Vietnam’s inclusion in index groups with a combined asset scale of hundreds of billions of US dollars is expected to attract substantial investment. We estimate an additional inflow of approximately $1-1.5 billion in passive funds and around $4-5 billion in active funds, totaling $5-6 billion in new capital.
The upgrade process will unfold in multiple stages until September next year, with the number of steps finalized in March. This timeline also marks the update of our models on how Vietnam enables global brokers to access its domestic market.
Dr. Nguyen Son, Chairman of the Board of Directors at the Vietnam Securities Depository and Clearing Corporation (VSDC)
To meet the growing demand from international investors and support Vietnam’s stock market upgrade, VSDC is accelerating the modernization of its technological infrastructure. These efforts aim to operate on globally recognized platforms, laying the foundation for sustainable growth and deeper integration of Vietnam’s capital market.
VSDC has been tasked with developing a Straight Through Processing (STP) platform for real-time interaction between custodian banks and securities companies. This initiative addresses the urgent need for automated connections, replacing manual processes, especially since Vietnam allowed foreign investors to trade without 100% pre-funding.
The interactive platform will enable global custodian banks and domestic securities firms to connect directly and automatically. This large-scale project requires close collaboration with securities firms and global custodians.
Under an MoF directive, the project must be completed by March 2026 for FTSE Russell’s review, targeting Vietnam’s official market upgrade on September 21, 2026. Technology providers estimate completion by December 2026, creating significant pressure that demands careful planning and strong support from global custodians.
Additionally, VSDC is developing an investment fund information platform to enhance transparency in Vietnam’s fund management industry. This platform, planned for rollout in 2026, will include a system for evaluating fund performance and recognizing top performers.
Another critical initiative is establishing a Central Counterparty Clearing (CCP) mechanism. A CCP will ensure settlement safety, enhance transparency, and stabilize the market by mitigating transaction failures due to insufficient cash or securities. VSDC aims to implement Phase 1 of the CCP roadmap by early 2027, with a formal proposal to the MoF underway.
As the KRX trading platform stabilizes and the market grows, VSDC will expand system capacity, upgrade servers, and integrate features like short selling and same-day trading. The CCP will be gradually incorporated into this framework, aligned with risk management capacity.
In line with government directives, VSDC will introduce new products such as VN100 futures contracts and index options. These systems will be designed comprehensively, covering registration, depository, clearing, and connections with payment banks.
Ms. Nguyen Thi Viet Ha, Acting Chairwoman of the Ho Chi Minh Stock Exchange (HoSE)
With ambitious economic growth targets, the potential inflows of domestic and foreign capital are significant. Even $15 billion in domestic capital would be substantial, requiring robust technological infrastructure to handle such demand.
HoSE has implemented a new system meeting market requirements but must urgently continue upgrading its IT systems to keep pace with growth. Enhancing the quality of listed products is also crucial. HoSE is committed to innovation, promoting ESG and sustainable development practices among listed companies to attract high-quality products that meet investor needs.
Mr. Nguyen Anh Phong, Chairman of the Hanoi Stock Exchange (HNX)
Strengthening support for companies in disclosing information and complying with regulations is essential. Improving English-language disclosures, nearly simultaneous with Vietnamese, will enhance accessibility for foreign investors, fostering a more open and transparent market.
The bond market presents both challenges and opportunities. Government bonds are crucial for addressing public debt and boosting investment. HNX is collaborating with the State Treasury to develop technological infrastructure, aiming to mobilize resources for economic development and improve the yield curve for better market reflection.
In the derivatives market, HNX recently launched VN100 futures contracts, offering investors risk hedging and efficient capital use. Plans include introducing index options within 1-2 years, following a strategy of starting with simple derivatives before progressing to more complex products.
Mr. Nguyen Duc Thong, CEO of the SSI Securities Corporation
The stock market’s supply side remains limited, but regulators are implementing measures to increase it. Relaxing listing criteria for tech companies could resolve funding challenges, as seen in markets like China and the US, where such flexibility enabled the growth of tech giants.
Developing more derivatives products will provide investors with new instruments for risk management and stimulate demand in the underlying market. Vietnamese investors seek a balance between risk and safety, and offering diverse products, as seen in other Asian markets, can meet this demand.
Mr. Nguyen Minh Tuan, CEO of AFA Capital
With double-digit GDP growth targets, significant capital will be required over the next five years. Domestic sources will drive capital inflows, supplemented by foreign investment post-market upgrade. However, Vietnam’s IPO rate is the lowest in Southeast Asia, necessitating solutions to increase product supply.
The stock market resembles the real estate market, with limited supply dominated by finance, banking, and real estate sectors. Increasing the proportion of SOE equitization and listing more private companies, especially tech firms, can address this imbalance. A dedicated monitoring framework for startups could support their IPOs while maintaining investor protection.
Mr. Le Minh, CEO of VIS Rating
FTSE Russell’s upgrade of Vietnam’s stock market, alongside Greece, highlights the importance of investment-grade classification. Greece’s upgrade was partly due to its investment-grade status by leading global rating agencies, signaling the need for Vietnam to achieve similar recognition for future upgrades.
Corporate bonds are expected to play a pivotal role in meeting investment needs for double-digit GDP growth, with a projected boom after 2027. Following the 2022 crisis, the bond market is recovering, supported by a new legal framework enhancing transparency and investor protection.
Credit rating agencies act as an extension of regulators, ensuring bond market quality. Maintaining the integrity of these agencies provides additional protection for the market and regulators.
Mr. Gary Harron, Head of Securities Services at HSBC Vietnam
We congratulate Vietnam on FTSE Russell’s reclassification of its stock market from Frontier to Secondary Emerging status, effective September 21, 2026. This upgrade reflects years of coordinated efforts and enhances Vietnam’s global profile, potentially attracting foreign inflows ranging from $3.4 billion to $10.4 billion.
Mr. Brook Taylor, Executive Director and Asset Management CEO at the VinaCapital Group
FTSE Russell’s upgrade could attract $5-$6 billion in investment, marking a positive turning point for Vietnam’s market. While inflows will not occur all at once, they represent significant progress.
Mr. Le Anh Tuan, CEO of Dragon Capital
Transitioning from a Frontier to an Emerging Market is crucial, as Frontier markets are often overlooked by investors. This upgrade is essential for Vietnam to enter the global playing field and attract international attention.
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Elevating Vietnam’s Stock Market: A Golden Opportunity to Cement Its Global Financial Standing
Speaking at the Emerging Vietnam “Beyond the Upgrade” event hosted by SSI Securities, Ms. Wanming Du, Director of Asia-Pacific Policy at FTSE Russell, remarked that over the past decade, she has witnessed numerous markets transition from frontier to emerging status. However, no country compares to Vietnam in terms of the speed and scale of its reforms.
