FTSE Russell has confirmed that Vietnam will be upgraded to its secondary emerging markets group starting in September 2023. This decision marks a significant milestone for Vietnam, which has been on the watchlist for nearly a decade. The upgrade is expected to redirect up to $6 billion in capital inflows, potentially boosting Vietnam's benchmark VN Index, which has underperformed compared to other Southeast Asian markets this year. The transition will be executed in four phases, concluding in 2027, allowing for an orderly market adjustment and better liquidity management. Tyler Manh Dung Nguyen, chief market strategist at Ho Chi Minh City Securities, highlighted the importance of structural improvements, including the introduction of a global broker mechanism and the removal of pre-funding requirements for equity trades. The upgrade coincides with the election of Communist Party chief To Lam as president, who aims to promote rapid and sustainable national development amidst rising energy costs and inflationary pressures. FTSE Russell estimates Vietnam's weight in its emerging market index to be around 0.23%–0.35%.