FTSE Russell Removes 9 Vietnamese Stocks from Upgrade Watchlist: SAB, DPM, HUT, DIG, EIB, DXG, PDR, FRT, KDC

Overview

FTSE Russell has removed nine Vietnamese stocks from its watchlist for potential inclusion in the FTSE Global Equity Index Series, reducing the eligible pool from 32 to 23 names. The affected tickers—SAB, DPM, HUT, DIG, EIB, DXG, PDR, FRT, and KDC—failed to meet the index provider’s criteria on liquidity, free-float, foreign ownership limits, and tradability. The decision, reported by SSI Securities, narrows the field of stocks that could benefit from an estimated USD 1.5-1.7 billion in foreign passive inflows when Vietnam is officially upgraded, likely in September 2026.

Key Facts

• FTSE Russell removed 9 stocks from its Vietnam upgrade list: SAB, DPM, HUT, DIG, EIB, DXG, PDR, FRT, and KDC.
• The eligible pool shrank from 32 to 23 stocks.
• Reasons for removal include insufficient liquidity, low free-float, limited foreign room, and poor tradability.
• The remaining 23 stocks (e.g., VIC, HPG, VHM, FPT, MSN) may attract USD 1.5-1.7 billion in foreign inflows upon upgrade.
• Vietnam’s official upgrade is expected to take effect in September 2026, with the final list announced before the FTSE review.
• SSI Securities reported that as of late April 2026, the VN-Index traded at a forward P/E of 13.2x, near its long-term average; excluding Vingroup stocks, the P/E drops to 10.3x.
• Total margin lending reached approximately VND 424 trillion, up 50% year-on-year.

What Happened

According to a report from SSI Securities, FTSE Russell has tightened its screening criteria for Vietnamese stocks eligible for the FTSE Global Equity Index Series. The index provider removed nine stocks from its watchlist, citing that they no longer meet the stringent requirements for liquidity, free-float ratio, foreign ownership room, and overall tradability. The affected companies include Sabeco (SAB), DPM (Phu My Fertilizer), HUT (Tasco), DIG (DIC Corp), EIB (Eximbank), DXG (Dat Xanh), PDR (Phat Dat), FRT (FPT Retail), and KDC (Kido Group).

The removal significantly reduces the likelihood of these stocks being included in the index upon Vietnam’s potential upgrade. Conversely, the remaining 23 stocks—such as VIC, HPG, VHM, FPT, and MSN—are considered to have higher compliance and are expected to be the primary beneficiaries of foreign passive inflows. The final list will be announced before the FTSE review in September 2026, with the official upgrade anticipated to take effect that same month.

Market Context

As of April 10, 2026, the affected stocks showed mixed price action: SAB closed at VND 46,000 (+1.55%), DPM at VND 29,000 (+2.11%), HUT at VND 17,000 (-1.73%), and DIG at VND 15,000 (flat). The VN-Index traded at a forward P/E of 13.2x, near its long-term average, but excluding Vingroup stocks, the valuation drops to 10.3x, suggesting relative attractiveness in the broader market. SSI noted that May is typically a low-information period, and profit growth may slow in coming quarters due to higher capital costs, fuel prices, and a high base from 2025. Margin debt has surged 50% year-on-year to VND 424 trillion, indicating elevated speculative activity.

Strategic Significance

The FTSE Russell decision underscores the importance of liquidity and foreign-ownership constraints for Vietnam’s market upgrade narrative. Stocks that fail to meet these criteria risk being excluded from passive fund flows, which could amount to USD 1.5-1.7 billion. For the nine removed tickers, the loss of upgrade-related inflows may weigh on valuations and foreign interest. Conversely, the 23 qualifying stocks are positioned to attract significant foreign capital, reinforcing the case for selective exposure to large-cap, high-liquidity names. The upgrade timeline to September 2026 provides a clear catalyst for the remaining stocks, but the removal also highlights structural challenges—such as limited foreign room and low free-float—that continue to hinder broader market accessibility.

What to Watch

• Final FTSE Russell list announcement ahead of the September 2026 review.
• Changes in foreign ownership limits for affected stocks (e.g., SAB, EIB) that could improve eligibility.
• Q2 2026 earnings reports for the 23 qualifying stocks to assess fundamental support for inflows.
• SBV policy on margin lending and foreign capital controls, which could impact liquidity.
• Any regulatory reforms to increase free-float or foreign room for Vietnamese listed companies.