FTSE Russell Confirms Vietnam's Emerging Market Upgrade
FTSE Russell has confirmed Vietnam's upgrade from frontier to emerging market status, effective September 21, 2026, based on progress in adopting a global broker model. This move aligns Vietnam with markets like India and China, facilitating passive fund investments in Vietnamese stocks. Vietnam's stock index saw significant gains in 2025 but has declined in 2026 amid broader market sentiment. Additionally, FTSE Russell maintained Indonesia's status, kept Egypt on a watch list, and reclassified Nigeria as a frontier market, while pledging ongoing review of Indonesia's reforms.
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FTSE Russell has officially upgraded Vietnam from frontier to emerging market status, effective September 21, 2026, following satisfactory progress in implementing a global broker model.
Upgrade Announcement
FTSE Russell announced on Tuesday that Vietnam will be upgraded to emerging market status from frontier status, based on an interim review. The FTSE Russell Index Governance Board confirmed it is satisfied with Vietnam's progress toward implementing the global broker model, which is essential for supporting index replication.
Implementation Timeline
Vietnam will be added to FTSE Russell's global equity indices beginning September 21, 2026, with phased implementation continuing into 2027.
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Implications for Vietnam
This decision places Vietnam on par with major markets such as India and China. It is expected to enable many passively managed global funds to invest in shares of locally listed Vietnamese companies. Vietnam's benchmark stock index is down 6% year-to-date but surged approximately 41% in 2025, reflecting strong economic growth of 8% in the export-reliant nation.
Other Market Reclassifications
In separate updates:
Indonesia's status as a secondary emerging market remains unchanged, and it is not being considered for inclusion on a watch list.
Egypt is retained on the watch list for a possible downgrade in equity market classification.
Nigeria has been reclassified as a frontier market.
FTSE Russell will continue to monitor market reforms in Indonesia and engage with participants, with a confirmation on Indonesian securities ahead of its June index review.
