The Ministry of Finance on Tuesday issued Circular No. 08/2026/TT-BTC, marking a key milestone in removing remaining technical barriers for the market to be included in the FTSE Russell Emerging Markets Index, with a potential upgrade scheduled for September this year.
Circular 08 introduces four major changes. First, by allowing connectivity via global brokers, foreign investors can now place orders through international brokerage firms without being required to open trading accounts directly at local securities companies, streamlining cross-border trading processes.
Analysts at broker SSI said the new legal framework allowing global brokerage firms to execute trades directly for clients would help align Vietnam’s market practices more closely with international standards, reduce counterparty risk, and boost investor confidence through the involvement of reputable intermediaries.
J.P. Morgan said an upgrade decision could unlock a sizeable wave of passive inflows into Vietnam. Global index funds could channel around $1.3 billion into the market, equivalent to a weighting of about 0.34% in the FTSE Emerging Markets All Cap Index, it said. Based on current market capitalization, around 22 Vietnamese stocks could be added to the index.