FTSE Russell Upgrades Vietnam: Which Stocks Benefit Most?

Overview

Vietnam’s stock market was officially upgraded by FTSE Russell on September 21, with 27 Vietnamese stocks added to the FTSE Global All Cap index. The upgrade is expected to attract $1.5-2 billion in passive inflows over the next 12 months, with large-cap stocks like VCB, VIC, VHM, BID, HPG, and VPB identified as key beneficiaries. For Vietcombank (VCB), the country’s largest listed bank by market capitalization, the inclusion reinforces its status as a core holding for foreign institutional investors.

Key Facts

• FTSE Russell upgrade effective September 21, 2026, adding 27 Vietnamese stocks to the FTSE Global All Cap index.
• Large-cap additions: VCB (Vietcombank), VIC (Vingroup), VHM (Vinhomes).
• Mid-cap additions: BID (BIDV), HPG (Hoa Phat Group), VPB (VPBank).
• 21 small-cap stocks added across banking, real estate, consumer staples, industrials, and securities sectors.
• Estimated passive inflows: $1.5-2 billion over 12 months, potentially exceeding $2 billion depending on index weight changes.
• VN-Index previously peaked at an all-time high of 1,936 points before a significant correction.
• Kafi Securities recommends phased disbursement rather than concentrating capital around the September 21 milestone.

What Happened

According to Kafi Securities, the FTSE Russell upgrade is not merely a reclassification but a broadening of Vietnamese equities’ access to international capital flows. The 27 stocks added to the FTSE Global All Cap include large-caps VCB, VIC, and VHM; mid-caps BID, HPG, and VPB; and 21 small-caps spanning banking, real estate, consumer, industrial, and securities sectors. Kafi advises investors to prioritize large-caps in the initial phase, monitor ETF rebalancing sessions to avoid chasing technical volatility, and shift focus to fundamental stock selection entering 2027.

Thieu Thi Nhat Le, CEO of UOB Asset Management Vietnam, estimates Vietnam could attract $1.5-2 billion in passive inflows from foreign ETFs over the next 12 months, potentially exceeding $2 billion depending on index weight adjustments. She identifies three promising sectors post-upgrade: banking, construction materials (including steel), and consumer staples. Dinh Quang Hinh, Head of Macroeconomic and Market Strategy at VNDirect Securities, expects foreign fund flows to concentrate in companies with high weights in FTSE Russell portfolios, specifically citing Vingroup, Vietcombank, and Hoa Phat. Nguyen Viet Quang, Sales Director at Yuanta Vietnam Securities, also favors banking, real estate, infrastructure, technology, consumer, materials, and securities stocks.

Market Context

Vietcombank (VCB) trades on the HOSE exchange and closed at VND 59,900 on September 19, 2026. The stock is a bellwether for the Vietnamese banking sector, which is expected to benefit from credit growth, public investment, and broader economic expansion. The FTSE Russell upgrade follows a period of volatility for the VN-Index, which had reached a record high of 1,936 points before correcting. Kafi Securities notes that foreign net buying turning sustainably positive would be a signal to increase exposure, while a correction to the 1,760-1,780 range would present accumulation opportunities for banks and large-caps like HPG.

Strategic Significance

For long-term investors, the FTSE Russell upgrade represents a structural shift in Vietnam’s capital markets, potentially lowering the cost of equity for large-cap companies and deepening liquidity. Vietcombank, as a Large Cap addition, is positioned to benefit from increased foreign ownership and index-tracking fund inflows. The bank’s inclusion in the FTSE Global All Cap enhances its visibility among global institutional investors and may support valuation multiples. Beyond VCB, the upgrade underscores the growing maturity of Vietnam’s equity market, with sectors like banking, real estate, and materials poised to capture foreign capital as the country integrates further into global benchmarks.

What to Watch

• Foreign net buying trends on HOSE, particularly in VCB, VIC, VHM, BID, HPG, and VPB.
• ETF rebalancing sessions around the September 21 effective date and subsequent index weight adjustments.
• VN-Index movement relative to the 1,936-point record high and the 1,760-1,780 support zone.
• Q3 2026 earnings releases from Vietnamese banks and corporates, providing fundamental confirmation.
• FTSE Russell’s semi-annual review in 2027 for potential weight increases or additional inclusions.