Following FTSE Russell’s latest interim review, the Vietnamese stock market has now been formally confirmed for upgrade to Secondary Emerging Market status, with implementation scheduled for 21 September 2026. This removes the remaining uncertainty around timing, as discussed in our previous updates, and confirms that the upgrade will proceed as expected.

Based on the latest timeline, the transition will take place in four phases to allow the market to absorb incoming capital in a controlled manner: 

• September 2026: Initial index inclusion at approximately 10%

• March 2027: Increase to approximately 30% cumulative weighting

• June 2027: Increase to approximately 65% cumulative weighting

   

• September 2027: Full index inclusion at 100%

In practice, this means foreign institutional capital, including both passive index-tracking flows and active emerging market allocations, will enter the market over time rather than all at once. We expect foreign institutional participation to increase across these phases, with flows concentrated in stocks with large market capitalization, strong liquidity, and high foreign ownership limits. This broader investor base is typically associated with improved liquidity and valuation support over time. Companies that deliver consistent earnings growth and maintain clear operating standards are well positioned to attract incoming foreign capital.

These are the same characteristics we focus on in our portfolio construction. Several of our holdings, such as Masan Group (MSN), FPT Corporation (FPT), Vincom Retail (VRE), and FPT Retail (FRT), are among those considered for FTSE Russell’s preliminary inclusion list. These businesses already rank among the more liquid and established names in the market, which positions them well to benefit from incremental inflows and broader investor attention.

For the overall stock market, the upgrade reflects continued improvements in accessibility, transparency, and governance. The presence of consumer companies on FTSE’s potential basket also reflects increased investor confidence in Vietnam’s domestic consumption as a key economic driver, supporting our positioning in leading consumer and retail names.

The index composition is expected to be finalized by FTSE Russell in August 2026. We will continue to monitor the implementation closely and keep you informed of any relevant developments.