Vietnam s new market status draws global investor confidence
Greater access to international capital is only the beginning for Vietnamese companies with the longer term opportunity being to turn that access into sustainable growth while meeting higher standards from global investors on transparency governance and investor communication
On September 18, Vietnam's stock market was officially incorporated into the FTSE Russell Global Equity Index Series, signaling the market's impending transition to secondary emerging market status on September 21. This development carries substantial implications for global investors, Vietnamese companies, and financial institutions alike.
For Thuy Vu Dropsey, chief of Corporate Development & Strategic Finance at Vingroup, the milestone is a source of national pride and a testament to Vietnam's progress in developing its capital markets. She emphasizes that the inclusion offers two key opportunities for Vietnamese companies: access to a larger pool of capital and the chance to enhance engagement with investors while raising governance and transparency standards.
The NYSE commends Vietnam's inclusion, highlighting the broader significance for banks and financial institutions. Luu Thi Thao, deputy CEO cum senior executive managing director of VPBank, notes that the upgrade can provide dual benefits: increased recognition for individual businesses and a broader opportunity to facilitate the flow of international capital into the Vietnamese economy.
VPBank, which already raises around $2 billion to $3 billion annually from international sources, sees the market upgrade as both an opportunity and a responsibility. For Masan Group, the upgrade coincides with Vietnam's evolving consumer economy, where rising incomes are driving demand for better products, services, and experiences.
Masan Group believes the market upgrade will amplify investment flows and visibility for Vietnam's private sector and consumer economy. As investment demand outpaces state budget and bank lending capacities, strengthening the stock market's role in financing Vietnam's next growth phase has become crucial. FTSE Russell has added 27 Vietnamese stocks to its global equity indices, reflecting the country's progress towards emerging market status.
Written by urgent.news from Vietnam Investment Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
