Vingroup among Vietnam stocks to debut on FTSE’s EM Index

FTSE Russell upgraded its list of Vietnamese equities on August 21, including Vingroup, Hoa Phat Group, Vietnam Prosperity Joint Stock Commercial Bank, and Vinhomes. This move marks a significant step in Vietnam's transition from a frontier market to a secondary emerging-market status. The index provider projects that this upgrade could inject up to US$6 billion into the market.

Six other stocks were also added to the FTSE All-World Index. Ruchir Desai, a fund manager at Asia Frontier Capital in Hong Kong, anticipates a positive sentiment towards these companies following the review. This development signifies Vietnam's growing appeal as an investment destination, with the country experiencing rapid growth in recent years.

The government, under General Secretary To Lam, has been pushing towards tech-driven innovation, moving away from its reliance on low-cost manufacturing. Vingroup, in particular, has seen a surge of 21% this year, compared to a 1% decline in the VN Index. The upgrade follows FTSE Russell's confirmation in April that Vietnam had met the criteria for secondary emerging-market status, with the transition expected to take place in four tranches from September 21 until the end of 2027.

However, Vietnam still faces hurdles, such as low free-float levels and limits on foreign ownership, which MSCI, another index provider, noted as challenges for reclassifying Vietnamese stocks. Despite these obstacles, analysts believe that the potential inflows from FTSE's decision could help counteract persistent foreign selling this year.

Overseas investors have withdrawn about US$3.5 billion from Vietnamese stocks as of August 21, 2026, following a record US$4.7 billion net outflow last year.