Vietnam's Stock Market Upgraded to 'Secondary Emerging' by FTSE Russell
Vietnam's stock market, a significant player in today's stocks, has reached a notable milestone. The State Securities Commission has announced that FTSE Russell will upgrade Vietnam's market status from 'frontier' to 'secondary emerging market' in September 2023. This move is a testament to the country's economic progress and market reforms.
Vietnam's benchmark stock index has witnessed remarkable growth, surging over 30% in the last year. This upward trajectory is supported by the country's robust economic performance. In 2021, Vietnam's economy grew by 7.1%, and it aims to maintain this momentum with an 8% growth target for 2022.
However, the International Monetary Fund (IMF) has projected a slight slowdown in Vietnam's economic growth to 6.5% in 2022, citing new US tariffs as a potential challenge. Despite this, the upgrade by FTSE Russell recognizes Vietnam's market progress and improvements in handling failed trades.
The upgrade to 'secondary emerging market' status will place Vietnam in the same league as economic powerhouses like China and India. This recognition could unlock significant capital inflows, potentially reaching up to US$6 billion. The promotion reflects Vietnam's sweeping market reforms since 2018, which have included removing some foreign ownership caps. The new status will take effect in September 2023, pending a review in March 2026.
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