FTSE Russell recently announced the results of its September semi-annual review for the FTSE Global Equity Index Series (GEIS) in the Asia-Pacific region (excluding Japan and China). This review is significant as Vietnam will officially transition to Secondary Emerging status within the FTSE system.
In the newly published list, 27 Vietnamese stocks were added to the FTSE All-Cap. This global equity index series is designed to represent nearly the entire investable global equity market.
Categorized by market capitalization, ba stocks were classified as large-cap: VCB (of Vietcombank), VIC (Vingroup), and VHM (Vinhomes).
For the mid-cap group, FTSE Russell included BID of BIDV, HPG (Hoa Phat), and VPB (VPBank). The remaining 21 codes belong to the small-cap group.
Additionally, FTSE also incorporated Vietnamese stocks into the FTSE Total-Cap, a broader index series that covers all eligible investable stocks. This index series includes a micro-cap group, featuring 90 newly identified Vietnamese stocks.
Furthermore, the 6 stocks VCB, VIC, VHM, BID, HPG, and VPB were also added to the FTSE All-World index, which represents large and mid-cap stocks in developed and emerging markets globally. According to FTSE Russell, this upgrade will make Vietnam the 49th country to join the FTSE All-World.
In early April, FTSE Russell confirmed that Vietnam's stock market would be upgraded from a frontier market to a secondary emerging market effective 21/9, following an assessment that Vietnam met market accessibility criteria. According to the roadmap, Vietnamese stocks will be included in FTSE’s global index series in multiple phases, starting from September, with allocation weights of 10%, 20%, 35%, and 35% respectively.
FTSE GEIS is a global equity index series covering developed, emerging, and frontier markets worldwide. The index series is constructed based on market capitalization and serves as a benchmark for many global investment products.
The inclusion of Vietnamese stocks in FTSE GEIS indices is expected to attract additional international capital flows. Some securities firms estimate approximately USD 6-8 billion in foreign capital could enter Vietnam, while HSBC presents an optimistic scenario of up to USD 10,4 billion, comprising both active and passive capital.
FTSE Russell is one of the ba leading global index providers, alongside MSCI and S&P Dow Jones Indices. Their index products are widely used globally by fund management companies, financial institutions, banks, and other investment organizations.
Tat Dat
