FTSE Russell Confirms Vietnam’s Emerging Market Status; Global Index Inclusion to Proceed in Phases

On Tuesday, FTSE Russell confirmed that following its interim review, Vietnam will be upgraded from "Frontier Market" to "Secondary Emerging Market" status this September. This implies that Vietnam will be integrated into the FTSE Russell Global Equity Index Series in phases starting September 21, 2026, a process set to continue through 2027.

 

FTSE Russell initiated the upgrade process for Vietnam last October but noted at the time that an interim review was necessary to assess whether the country had made sufficient progress in facilitating connectivity with global brokers.

 

On Tuesday, the FTSE Russell Index Governance Board stated: "The FTSE Russell Index Governance Board confirms it is satisfied with the progress made toward the implementation of a global broker model, which is essential to support index replication."

 

This decision follows market-friendly reforms implemented by Vietnam. Upon its elevation to Emerging Market status, Vietnam will stand alongside markets such as India and China, enabling numerous passively managed funds to purchase shares of Vietnamese listed companies.

 

Due to recent conflict in the Middle East dampening market sentiment, Vietnam's benchmark equity index has declined 6% year-to-date. However, in 2025, the index surged by approximately 41%, marking its largest annual gain in eight years, as Vietnam's economy grew rapidly at a rate of 8%.

 

Separately, FTSE Russell stated that Indonesia's status as a Secondary Emerging Market remains unchanged, and the agency is not currently considering the country for its Watch List.

 

Investor confidence in Indonesia has recently been impacted by concerns over a lack of transparency regarding stock ownership and trading. In late January, another index provider, MSCI, warned that Indonesia faced a potential downgrade.

 

FTSE Group stated this Tuesday that it will continue to monitor the progress of Indonesia's market reforms and communicate with market participants. It added that it would confirm the treatment of Indonesian securities ahead of the June index review.

 

FTSE Russell also retained Egypt on its Watch List for a potential downgrade in its equity market classification, while reclassifying Nigeria as a Frontier Market.