HO CHI MINH CITY, VIETNAM – APRIL 6: People ride motorbikes on a street on April 6, 2026 in Ho Chi Minh City, Vietnam. The city, which has the highest number of registered motorbikes in the country, is seeing growing economic pressure on workers who rely on motorcycles for their livelihoods amid fluctuating fuel prices linked to ongoing conflict in the Middle East. (Photo by Thanh Hue/Getty Images)
Thanh Hue | Getty Images News | Getty Images
FTSE Russell confirmed on Tuesday it will upgrade Vietnam to emerging market status from frontier status in September based on an interim review, the final seal of approval for the long-awaited move.
Vietnam will be added to FTSE Russell’s global equity indices beginning on September 21 in phases that will continue into 2027.
FTSE Russell had upgraded Vietnam in October subject to an interim review to determine whether enough progress had been made by the country in enabling access to global brokers.
“The FTSE Russell Index Governance Board confirms that it is satisfied with the progress made towards implementing the global broker model, which is essential to support index replication,” FTSE said.
The decision puts Vietnam on par with markets like India and China and follows market-friendly reforms by the communist-ruled Southeast Asian country. It will also allow many passively managed funds to buy shares of locally listed companies.
Vietnam’s benchmark stock index is down 6% so far this year as the war in the Middle East has sapped sentiment. It surged about 41% in 2025, its strongest gain in eight years, as the export-reliant nation posted economic growth of 8%.
Separately, the index provider said Indonesia’s status as a secondary emerging market remains unchanged and it is not considering the country for inclusion on its watch list.
Investor confidence in Indonesia, Southeast Asia’s biggest economy, has been shaken amid concerns about a lack of transparency around stock ownership and trading. Rival index provider MSCI warned in late January that the country was at risk of being downgraded.
FTSE said on Tuesday it will continue to monitor the progress of market reforms in Indonesia and engage with market participants. It will confirm the treatment of Indonesian securities ahead of its June index review, it added.
The index provider also retained Egypt on its watch list for a possible downgrade in its equity market classification, while reclassifying Nigeria as a frontier market.