Market upgrade places nation on investment map

April 7 marked a truly monumental day for Vietnam. On that day, it was confirmed that Vietnam’s inclusion as a secondary emerging market will proceed in the forthcoming FTSE Russell rebalance, due in September.

- By Wanming Du Director of Index Policy for Asia-Pacific, FTSE Russell

Within hours, congratulatory messages flowed across social media and professional networks from global investors, market practitioners, policymakers, and industry peers. That collective response spoke volumes. It was more than a celebration; it was a clear endorsement from the international investment community, recognising the reform progress, open engagement, and growing confidence in Vietnam’s capital market journey.

Beyond the headlines, the inclusion of a new market into a global benchmark carries deeper and more lasting implications. While market attention often focuses on capital inflows, the impact goes well beyond that. Passive investment linked to global benchmarks tends to be steady and long term, and its presence can gradually reshape a market’s structure.

For Vietnam, this is particularly important. The market today remains largely driven by retail participation and active investment strategies. A broader passive investor base helps bring balance, introducing capital that remains invested through market cycles and providing a more stable foundation as the market continues to mature.