Upgrade reforms reshaping the outlook for foreign capital

Despite recent net foreign outflows, Vietnam’s stock market boasts expectations of a recovery in foreign capital, supported by an upgrade progress and a stable macroeconomic backdrop.

- By Khanh Linh

FTSE Russell held a meeting of its Policy Advisory Board on March 19, one of the highest consultative levels in its market classification framework, marking a notable step in an interim review ahead of results on Vietnam’s stock market upgrade process.

The meeting followed earlier consultation rounds with the Market Classification Advisory Committee and the Asia-Pacific Regional Advisory Committee, and is therefore seen as consolidating assessments, including market accessibility for countries on an upgrade pathway.

FTSE Russell is expected to announce the interim review results on April 8. For Vietnam, this serves as an interim checkpoint in meeting upgrade criteria before progressing to subsequent stages, with developments in the process likely to influence expectations for foreign capital inflows and domestic market sentiment.

Bui Hoang Hai, vice chairman of the State Securities Commission of Vietnam, said the country remained a regional bright spot in 2025, with growth among the highest globally, stable macroeconomic balances, and strong stock market performance, with index growth trailing only South Korea and Pakistan. Market liquidity was also the highest in ASEAN, while reforms in technology infrastructure and the legal and business environment have supported progress towards FTSE Russell’s upgrade criteria.