Vietnamese brokerage Vietcap Securities has identified 28 local stocks that meet the preliminary criteria for inclusion in the FTSE Global All Cap Index, as Vietnam enters a decisive phase in its bid to be reclassified as a secondary emerging market.

In a recent update, Vietcap said the reclassification process has reached a critical juncture as index provider FTSE Russell begins its mid-year review in March 2026. The brokerage maintains September 2026 as its base-case timing for Vietnam’s official upgrade to secondary emerging market status.

Vietcap noted that recent regulatory changes have addressed key technical requirements. Following the issuance of Circular No. 08/2026 by the Ministry of Finance, effective from February 3, regulators have implemented adjustments to enable the Global Broker Model - a crucial mechanism for efficient index replication.

“The completion of the legal framework and improvements in market accessibility are important steps in Vietnam’s deeper integration into global capital flows,” Vietcap said, adding that the March review is largely procedural as FTSE Russell finalizes its assessment.

Investors watch Vietnamese stock prices. Photo by The Investor/Trong Hieu.

Easier access for foreign institutional investors

A key provision of Circular 08 allows foreign institutional investors to place orders with local brokerages via an offshore global broker, without the need to open trading accounts directly with domestic securities firms. The change removes the requirement for foreign institutions to complete direct registration procedures with each local broker.

The reform is expected to significantly reduce administrative hurdles for foreign institutional investors. For example, index-tracking funds such as Vanguard will no longer need to conduct know-your-customer (KYC) procedures with individual Vietnamese brokerages, relying instead on a global broker that has already vetted a selected group of local firms.

Key meetings and settlement capacity

FTSE Russell will hold two committee meetings in March: the Equity Country Classification Advisory Committee on Tuesday, March 3, and the Policy Advisory Board on Thursday, March 19. The official outcome will be announced on Tuesday, April 7.

Beyond standard criteria, the committees are also expected to discuss the non-prefunding (NPF) trading capacity of Vietnamese brokerages - a topic that has drawn recent scrutiny. Based on regulatory caps, which limit NPF exposure to twice a brokerage’s equity after deducting margin loan balances, the combined NPF capacity of the five largest domestic brokerages, including Vietcap, is estimated at nearly $5 billion.

This is well above the estimated $1.5 billion required by index-tracking funds to purchase Vietnamese equities. Vietcap added that such funds are likely to disburse capital in multiple tranches - for example, around $300 million across five rounds - easing concerns over settlement capacity. The final structure is expected to be clarified on April 7.

Stocks meeting preliminary criteriaVietcap said Vietnam is expected to pass the FTSE Russell review and reiterated its view that September 2026 remains the base-case timing for the upgrade. It also outlined 28 stocks that meet the preliminary screening criteria for the FTSE Global All Cap Index, based on data as of December 31, 2024.

The stocks include Vingroup (VIC), Vinhomes (VHM), Hoa Phat Group (HPG), Masan Group (MSN), Vietcombank (VCB), Vinamilk (VNM), SSI Securities (SSI), Sacombank (STB), VIX Securities (VIX), VietJet Air (VJC), Vincom Retail (VRE), Vietcap Securities (VCI), SHB (SHB), VNDirect (VND), Gelex Group (GEX), Kinh Bac City (KBC), Khang Dien House (KDH), FPT Retail (FRT), Duc Giang Chemicals (DGC), Eximbank (EIB), Tasco (HUT), Dat Xanh Group (DXG), PetroVietnam Fertilizer (DPM), Petrolimex (PLX), Phat Dat Corp (PDR), Sabeco (SAB), DIC Corp (DIG), and Kido Group (KDC).

FTSE Russell’s screening criteria include market capitalization, liquidity, free-float levels and remaining foreign ownership limits. Vietcap cautioned that the list is indicative only and subject to change, with the official constituent list expected to be announced in August 2026.

FTSE Russell published a Vietnam-focused FAQ document in November 2025, estimating Vietnam’s prospective weightings at 0.04% in the FTSE Global All Cap Index, 0.34% in the FTSE Emerging All Cap, 0.02% in the FTSE All-World and 0.22% in the FTSE Emerging Index.