Vietnam has met 7 out of 9 criteria. Following the October announcement, Vietnam surpassed the remaining 2 criteria, achieving all 9. This milestone elevates Vietnam to the “Secondary Emerging Market” status within the FTSE framework. Mrs. Wanminh Du emphasized this as a significant achievement deserving widespread recognition.
Mrs. Wanminh Du highlights Vietnam’s official status as a Secondary Emerging Market in the FTSE framework.
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Mrs. Wanming noted that after meeting technical standards, the next phase is implementation, integrating Vietnam into the FTSE Global Benchmark Index. This involves global index-tracking funds adding Vietnam to their portfolios. A one-year notice period is required for this transition, a standard procedure applied to other upgraded markets, not unique to Vietnam.
The one-year preparation period is essential as the market shifts from ‘Frontier’ to ‘Secondary Emerging Market’. This transition cannot happen overnight, as different investor groups need time to adjust: Frontier market investors must divest, while emerging market investors must treat Vietnam as a new market, including account setup and operational readiness.
During the discussion, Mrs. Wanming highlighted the importance of the global broker model. This model enables index-tracking funds to replicate the index efficiently. Currently, investing in Vietnam requires local registration and extensive paperwork. FTSE proposes allowing index-tracking funds to use their global brokers instead of local ones, streamlining the process.
Mrs. Wanming shared that global investors demand Vietnam make investing as seamless and efficient as possible, rather than creating special conditions for a relatively small market. This model is not new, having been implemented in emerging markets like Indonesia and Taiwan.
The FTSE director outlined the roadmap for the next 12 months following Vietnam’s upgrade. During this period, the State Securities Commission, investors, and market participants must ensure smooth implementation. A checkpoint in March will confirm the deployment timeline and official announcement.
Implementation will occur in September, as FTSE conducts global index reviews in March and September. Approximately one month before September, FTSE will publish the list of stocks expected to be included in the index.
 Mrs. Wanming Du with Mr. Thomas Nguyen, Director of Overseas Markets at SSI, during the Phở Side Chat program.
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The upgrade is not just about capital but also about opening the market to foreign investment. Moving from the Frontier group, with minimal index-tracking funds, to the Emerging Market group, with significantly larger funds (estimated 15-20 times greater), is a positive step supporting growth and reform resilience.
The upgrade also involves enhancing market infrastructure, offering larger products and assets aligned with global best practices. Mrs. Wanming stated that FTSE aims not only to rank but also to develop alongside the market, committing to long-term partnership with Vietnam.
– 11:36 04/12/2025
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