FTSE Russell Upgrades Vietnam to Secondary Emerging Market, Adds 27 Stocks
This Aveluro analysis covers VCB (Vietcombank) on HOSE in the Banks sector. The classified event type is sector sentiment, with positive sentiment and a deterministic market-impact score of 4.0/10. Aveluro classifies this story as a positive catalyst in the stock's news coverage. Source coverage came from CafeF - Thị trường chứng khoán, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
FTSE Russell has officially upgraded Vietnam from Frontier to Secondary Emerging Market status, effective September 21, 2026. In its semi-annual review, the index provider added 27 Vietnamese stocks to the FTSE All-Cap index, with six large and mid-cap names also joining the FTSE All-World index. This marks a milestone for Vietnamese equities, opening the door to substantial passive investment flows.
Key Facts
- FTSE Russell upgraded Vietnam to Secondary Emerging Market, effective from market open on September 21, 2026.
- 27 Vietnamese stocks were added to the FTSE All-Cap index, including 3 Large Cap (VCB, VIC, VHM), 3 Mid Cap (BID, HPG, VPB), and 21 Small Cap names.
- Six stocks—VCB, VIC, VHM, BID, HPG, and VPB—were also added to the FTSE All-World index, making Vietnam the 49th country in that index.
- The inclusion will be phased in four stages, starting September 2026 and completing September 2027.
- FTSE Total-Cap includes an additional 90 Vietnamese micro-cap stocks, bringing total new additions to 117.
- The upgrade follows improvements in market accessibility, non-prefunding mechanisms, and connectivity with global brokers.
What Happened
On August 21, 2026, FTSE Russell announced the results of its semi-annual review for the FTSE Global Equity Index Series (GEIS) for the Asia-Pacific region, excluding Japan and China. The review confirmed Vietnam’s reclassification from Frontier to Secondary Emerging Market, a change long anticipated by domestic and international investors. The upgrade takes effect on September 21, 2026.
The announcement detailed the inclusion of 27 Vietnamese stocks in the FTSE All-Cap index. Among them, Vietcombank (VCB), Vingroup (VIC), and Vinhomes (VHM) were classified as Large Cap; BIDV (BID), Hòa Phát (HPG), and VPBank (VPB) as Mid Cap; and 21 others as Small Cap, including FPT, Gelex, HDBank, HSC, Masan Consumer, Masan Group, Novaland, SHB, Sacombank, SeABank, SSI, TCBS, Vinamilk, Vietcap, Vietjet, MSB, Vincom Retail, Vinpearl, VIX, VNDirect, and VPS. Additionally, six of these—VCB, VIC, VHM, BID, HPG, and VPB—were added to the FTSE All-World index, which tracks large and mid-cap stocks globally.
FTSE Russell stated that Vietnam now meets all criteria for Secondary Emerging Market status, citing improvements in market accessibility, the non-prefunding mechanism, and connectivity with global brokers. The index provider also confirmed that the inclusion will be phased over four stages from September 2026 to September 2027 to mitigate liquidity impact and allow for orderly capital allocation.
Market Context
Vietcombank (VCB) closed at VND 59,100 on August 21, 2026, on the HOSE. The broader market has been anticipating this upgrade for months, with banking and real estate stocks—such as VIC (VND 205,000) and VHM (VND 71,700)—already pricing in potential inflows. The phased inclusion is expected to reduce volatility but will likely attract significant passive fund flows over the next year, particularly into the six All-World constituents.
Strategic Significance
The upgrade to Secondary Emerging Market status is a structural shift for Vietnamese equities. It is expected to enhance liquidity, improve corporate governance standards, and attract a broader base of international investors. For long-term investors, the inclusion of VCB, VIC, VHM, BID, HPG, and VPB in the FTSE All-World index is particularly significant, as these names will be benchmarked by global funds, potentially leading to sustained demand. The phased approach suggests that inflows will be gradual, but the overall trajectory points to deeper integration of Vietnam into global capital markets.
What to Watch
- Implementation of the first phase of index inclusion in September 2026 and subsequent quarterly phases.
- Foreign ownership limits and any regulatory changes that could affect index eligibility.
- Quarterly earnings reports from the six All-World constituents (VCB, VIC, VHM, BID, HPG, VPB) to assess fundamental performance.
- Trading volumes and price movements around the effective date of September 21, 2026.
- Any announcements from FTSE Russell regarding further reviews or changes to Vietnam’s market status.