{
  "id": 6101842,
  "title": "Beyond FTSE an upcoming capital market opportunity",
  "url": "https://urgent.news/2026/09/07/beyond-ftse-an-upcoming-capital-market-opportunity",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-07T04:51:01.000Z",
  "source": {
    "name": "Vietnam Investment Review",
    "slug": "vietnam-investment-review",
    "url": "https://vir.com.vn/beyond-ftse-an-upcoming-capital-market-opportunity-160246.html"
  },
  "original_language": "en",
  "account": "Vietnam has made significant progress in recent decades, earning a shift from FTSE frontier market status to secondary emerging market status. Recent reforms aim to further modernise the capital markets, including the 2024 phase-out of the pre-funding requirement and the introduction of a new trading system capable of accommodating large foreign institutional investors. With the ambitious goal of achieving high-income status by 2045, Vietnam is poised for an investment climate that is truly unique.\n\nNigeria provides a useful parallel case for Vietnam's potential success. In late 2025, Nigeria was placed on a watch list by FTSE due to the small size of the overall stock market and challenges in market infrastructure. However, in early 2026, the FTSE Equity Board reinstated Nigeria's frontier market rating after observing improvements in foreign investment access and currency stability. This year, considerable capital flows pushed the market up 71 percent year to date, with a five-year performance of over six times. Notably, 89 percent of all trades on the stock exchange in the first half of 2026 were conducted by local investors, indicating a strong foundation for foreign investment.\n\nVietnam's market experience aligns closely with Nigeria's, with local investors accounting for up to 99 percent of daily trading volume. This local dominance suggests that any increase in foreign investment will magnify the market's performance. Estimates of initial foreign capital inflows due to the reclassification to FTSE emerging market status range from $3-5 billion, which may appear small in relation to the total market capitalisation of Vietnam's stock market. However, the impact of such inflows is likely to be far-reaching. As foreign investment commitment grows, it will attract additional passive capital inflows from institutional investors, creating a self-fulfilling prophecy where increased foreign investment leads to further capital flows.\n\nThe high local investment participation rate of 99 percent in Vietnam means that any foreign capital inflow will have a magnifying effect compared to lower participation rates. Additionally, foreign passive investment flows will likely exceed the initial $3-5 billion range. A more conducive investment climate will encourage further local interest, leading to stable gains in the stock market. However, government policies, infrastructure investments, and supportive economic policies are crucial to continue attracting investment interest. Transparency, trust, and a stable currency and interest rate environment are essential to maintaining foreign investment.\n\nDespite the apparent low initial capital inflows, their impact is significant. These inflows will be followed by substantial additional passive capital inflows, potentially doubling or even tripling the original amount. Over the long term, this reclassification will transform the investment landscape of Vietnam's markets positively. The government's efforts to modernise the market and promote a vibrant corporate bond market are commendable. To fully integrate into the global financial system, Vietnam must develop a substantial bond market that attracts consistent foreign investment. This development will create a conducive investment climate for a buy-and-hold strategy, moving away from the current trading mentality that has dominated the market. Overall, the FTSE reclassification is expected to yield greater-than-anticipated benefits for Vietnam's stock market.",
  "summary": "Vietnam s market reclassification could open the door to a new wave of international capital Dr Christian Kamm president of Kamm Investment Inc explains how turning this opportunity into sustainable growth will depend on Vietnam s ability to further modernise market infrastructure deepen the corporate bond market and more besides",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "Nairametrics",
        "title": "FirstHoldCo joins FTSE Frontier 50 Index, strengthening global investor access and market visibility",
        "url": "https://urgent.news/2026/09/07/firstholdco-joins-ftse-frontier-50-index-strengthening-global",
        "published": "2026-09-07T21:26:25.000Z"
      },
      {
        "outlet": "Punch",
        "title": "Firstholdco joins ftse frontier 50 index, strengthening global investor access and market visibility",
        "url": "https://urgent.news/2026/09/08/firstholdco-joins-ftse-frontier-50-index-strengthening-global",
        "published": "2026-09-08T01:25:51.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}