Implementation key to Vietnam s post upgrade capital inflows

The UK-Vietnam Business Forum 2026 emphasized that Vietnam's market reforms must deliver practical results, following the country's inclusion in the FTSE Global Equity Index Series on September 18. This FTSE Russell inclusion, which covers $20 trillion of worldwide assets, lifted Vietnam to Secondary Emerging Market status. However, FTSE Russell warned that market classification alone does not guarantee capital allocation.

Wanming Du, director of index policy for Asia-Pacific, urged for simpler account opening, improved trading and settlement services, stronger governance, and a larger domestic institutional investor base. Gary Harron, head of securities services at HSBC, highlighted the shift from one-way communication to a constructive, two-way dialogue between officials and brokers/custodians.

The State Securities Commission and State Bank of Vietnam should brief investors on policy changes and listen to their feedback, according to Harron.

Nguyen Quoc Dung, CEO of Eastspring Investments, cautioned against premature asset allocation, pointing to the need for fundamentals, liquidity, transparency, corporate governance, and a sufficient number of high-quality listed companies. The FTSE upgrade is a milestone, not an end goal, according to Dung, who now aims for MSCI recognition. Dung stressed that Vietnam's economy cannot rely solely on bank lending and requires a more robust capital market for long-term funding.

Dung noted that while there is strong demand for growth, the supply of suitable assets is the limiting factor. Vietnam needs more equities and quality listings across sectors, particularly in infrastructure. With appropriate structures, Vietnam does not lack capital; the challenge is connecting capital to these opportunities for long-term financial investors.