Vietnam’s FTSE Upgrade: Six Stocks Enter All-World as Inclusion Is Phased Through 2027

Vietnam’s promotion from Frontier to Secondary Emerging Market status is a major market-access milestone, but it is not a one-day flood of foreign capital. FTSE Russell’s September 2026 review adds six Vietnamese large- and mid-cap stocks to the FTSE All-World Index, while the broader index changes cover 117 stocks across several benchmark segments. The transition begins on September 21, 2026, and is scheduled to reach full inclusion in September 2027. 1317

The six Vietnamese stocks entering FTSE All-World

The six companies entering FTSE All-World are:

• Vietcombank (VCB) — large cap
• Vingroup (VIC) — large cap
• Vinhomes (VHM) — large cap
• BIDV (BID) — mid cap
• VPBank (VPB) — mid cap
• Hoa Phat Group (HPG) — mid cap

These six stocks are also being added to the relevant FTSE All-Cap and FTSE Total-Cap universes. The large-cap group consists of VCB, VIC and VHM, while BID, VPB and HPG are classified as mid caps. 1213

That distinction matters. FTSE All-World focuses on large- and mid-cap companies, whereas the wider FTSE Global Equity Index Series includes additional small- and micro-cap segments. The 117-stock figure therefore should not be read as 117 new constituents of the flagship All-World index.

What the 117-stock review includes

FTSE Russell’s September review identifies 117 Vietnamese additions to its global equity benchmarks:

• Six large- and mid-cap stocks entering FTSE All-World, All-Cap and Total-Cap
• 21 small-cap stocks added to broader or narrower capitalization-based benchmarks
• 90 micro-cap stocks added mainly to the FTSE Global Total-Cap and micro-cap segments

In total, 27 stocks are being added to FTSE All-Cap, which covers large-, mid- and small-cap companies. The additional 90 micro-cap names expand Vietnam’s representation in the wider Total-Cap universe but do not represent new additions to the widely followed All-World benchmark. 129

Key implementation dates

The review uses data through the last business day of June, consistent with FTSE’s published timetable for September semi-annual reviews. FTSE released its indicative constituent list on August 21, and the implementation is scheduled after the close of trading on Friday, September 18, with the revised composition applying from Monday, September 21. 623

The practical timeline is:

• Last business day of June 2026: data cutoff for the September review
• August 21, 2026: indicative constituent list published
• September 4, 2026: deadline for client queries
• September 18, 2026: changes take effect after the market close
• September 21, 2026: revised indexes apply at the market open
• September 2027: Vietnam reaches the planned 100% inclusion factor

The reclassification FAQ identified in the official LSEG material is dated August 27, 2026. That date differs from the August 25 date cited in some earlier market descriptions. 17

Why the upgrade is being phased in

Vietnam’s move into the FTSE Global Equity Index Series is being implemented through a regional inclusion factor rather than at full weight immediately. The schedule is 10% in September 2026, 30% by March 2027, 65% by June 2027 and 100% by September 2027. 17

A phased implementation reduces the need for index-tracking funds to trade the entire estimated position at once. It also gives international investors, brokers and market infrastructure providers more time to establish the custody, execution and settlement arrangements needed to replicate the index.

FTSE’s decision follows progress on Vietnam’s market-access framework, including the development of a global-broker model and changes supporting non-prefunding arrangements. FTSE had previously identified access for global brokers as an important condition for the reclassification. 202729

How much foreign capital could arrive?

Market estimates differ because the eventual amount depends on the assets tracking relevant FTSE benchmarks, the final index weights, available foreign-ownership capacity, liquidity and how fund managers execute their trades.

One estimate puts cumulative passive inflows across the four implementation tranches at more than $2.2 billion. Since only about 10% of the transition is scheduled for the first tranche, the September flow could be approximately $200 million to $220 million. That is a market estimate, not a commitment by FTSE, Vanguard or any other fund manager. 42

Other estimates are lower. One projection cited by market coverage puts passive inflows at roughly $1.33 billion to $1.5 billion, again emphasizing that the money will arrive over several tranches rather than all at once. 7

The most useful conclusion is therefore directional: the upgrade can create a sustained source of institutional demand, but the first rebalance is unlikely to match the headline value of the full transition estimate.

What it means for Vanguard’s FTSE All-World ETFs

A fund designed to track the FTSE All-World Index, such as Vanguard’s FTSE All-World UCITS ETF, is expected to adjust its portfolio as the underlying index changes. Vanguard describes the fund’s benchmark as a market-capitalization-weighted index of large- and mid-cap companies in developed and emerging countries. 64

However, investors should distinguish between a fund’s published holdings and its future holdings. Vanguard’s available July 31 portfolio data predates Vietnam’s September implementation, so the absence of Vietnamese stocks in that snapshot does not show what the ETF will hold after the index change. 5556

The eventual Vietnam allocation should also be expected to be relatively small within a globally diversified fund. The ETF’s size, replication method, final index weights and trading process will determine how and when the six stocks appear in its published holdings.

Why the upgrade may boost sentiment without ending foreign selling

The announcement improves Vietnam’s visibility among international investors and may strengthen expectations for better liquidity, valuation support and institutional participation in the eligible stocks. Vietnam’s VN-Index gained 5.55% in August, reaching 1,832.12 at the August 28 close, with Vingroup and bank stocks among the main drivers. 36

Foreign flows have nevertheless been volatile. Recent reporting recorded periods of renewed buying after the FTSE announcement, while other market coverage continued to describe significant foreign net selling and broader global-flow pressures. 404146

That makes the upgrade better understood as a structural improvement with a short-term sentiment effect, not as proof that the foreign-selling trend has permanently reversed. Index-related buying will be concentrated in eligible constituents and spread across the implementation schedule. It does not automatically remove risks linked to global markets, currency movements, valuations, liquidity, foreign-ownership limits or investors’ portfolio decisions.

What investors should watch next

The most important signals will be:

1. The final FTSE constituent and weight files before implementation
2. Actual trading around September 18 and 21, rather than headline flow estimates
3. Foreign-ownership headroom and liquidity in the six All-World constituents
4. The March and June 2027 inclusion stages, which will determine whether the upgrade creates sustained demand
5. Whether foreign buying broadens beyond index-related names into the wider Vietnamese market

Vietnam’s FTSE promotion opens a more direct channel to global portfolios. The headline event is the addition of six stocks to FTSE All-World, but the deeper change is the country’s gradual integration into a broader emerging-market benchmark system. The opportunity is meaningful; the cash impact, however, will be staged and dependent on actual investability.