A recent report by ACB Securities (ACBS) lists passive funds expected to invest in Vietnam after FTSE Russell upgrades the market to secondary emerging status. Following the official upgrade in september 2026, ACBS estimates an additional inflow of approximately USD 435.4 million from ETFs into the Vietnamese market.

Among these, Vanguard FTSE Emerging Markets held the largest net assets as of 10/11. This fund tracks the FTSE Emerging All Cap index, with net assets recorded at USD 105.5 billion. Given Vietnam's 0.34% weighting in this index, the fund is projected to allocate around USD 358.5 million.

ACBS's estimate follows information that the State Securities Commission (SSC) met with representatives from the Vanguard investment fund last week. The discussion focused on opportunities for cooperation, development, and attracting foreign investment.

During the meeting, Vanguard representatives shared plans to initiate investment activities in Vietnam after the stock market's upgrade. This includes opening trading accounts and indirect capital accounts. The asset management firm emphasized that adhering to new regulatory procedures will be a crucial test, providing global investors with practical experience of Vietnam's investment environment.

The Vanguard Group is a major US asset management company, specializing in providing low-cost mutual funds and ETFs. It is the world's largest mutual fund issuer and one of the largest asset managers globally. Vanguard is recognized for its early development of index fund investing.

Investors monitor electronic boards at a securities company headquarters in Ho Chi Minh City. *Quynh Tran*

Last week, FTSE Russell announced Vietnam's weighting in new indices. Specifically, Vietnam will account for 0.04% in the FTSE Global All Cap and 0.34% in the FTSE Emerging All Cap.

Before the upgrade, no Vietnamese stocks were included in the FTSE Global All Cap Index or the FTSE Emerging All Cap, as both indices only track developed and emerging markets. Many global investment funds and large ETFs often use these indices as a basis for performance tracking.

FTSE Russell confirmed that Vietnam met all criteria for upgrading from frontier to emerging market status on 8/10. The upgrade will take effect from 21/9/2026, with a mid-term review scheduled for march 2026.

The market classification organization stated that the march 2026 review will assess whether Vietnam has made sufficient progress in facilitating access for global brokers. This is an essential factor supporting effective index replication. This move is also expected to align Vietnam's market practices with international standards, mitigate counterparty risk, and strengthen investor confidence through established relationships with reputable intermediaries.

Tat Dat