JICA congratulates Vietnam on FTSE Russell market upgrade

Vietnam has joined FTSE Russell's emerging market benchmark, marking a significant milestone for the country's stock market after years of reforms aimed at attracting foreign investors. The index provider estimates that the inclusion could redirect up to $6 billion into Vietnam, which has been on a watchlist since 2018 for entry into a category that also includes China and India.

Vietnamese stocks were added to the index on Monday, with the benchmark index opening up 0.54% on the day, led by banks. Anticipation of the upgrade helped revive foreign interest in Vietnamese equities, with overseas investors buying a net 2.7 trillion dong worth of shares last week. However, the market is expected to remain relatively subdued until 2027, as the transition will take place in four stages through the year, with 10% added in September, an additional 20% in March, and 35% each in June and September of next year.

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