Following Vietnam’s upgrade to emerging market status by FTSE Russell in early October, analysts estimate the new status could attract US$4–10bn in portfolio inflows over the next 12–18 months.
Other estimates predict Vietnam could see cumulative capital inflows of up to US$25bn by 2030.
This represents a wave of capital that will support the continued growth of Vietnamese equity markets and broader economic expansion.
In their monthly investor report, the team at Vietnam Holding, a Vietnam-focused investment trust, explained that the decision to upgrade Vietnam to an emerging market followed years of steady reform, including removing pre-funding requirements for foreign investors and launching the KRX trading system. These reforms are symptomatic of a Vietnamese government keen to open its economy to the world, ultimately leading to Vietnam achieving emerging market status.
In addition to the upgrade, Vietnam is enjoying strong economic growth in 2025, underscoring the attractiveness of its investment case.
Vietnam’s economy grew 6.93% in Q1 2025, 7.96% in Q2, and an estimated 8.23% in Q3—the fastest pace in over a decade. The country remains on track to meet its 8% GDP growth target for 2025.
Vietnam’s growth story is being driven by foreign investment and the resilience of the export market, despite concerns about global trade tariffs.
FDI disbursements rose 8.5% year-on-year to US$18.8bn in the first nine months of 2025. Exports have remained robust, led by electronics and agricultural goods.
The government’s US$36bn public-investment programme continues to anchor infrastructure growth, whilst construction and industrial sectors benefit from fiscal support and policy continuity.
Market Dynamics and Outlook
Vietnam’s stock market is now the most liquid in Southeast Asia, with domestic liquidity at record highs. Although retail flows can drive volatility, the broader trajectory is clear: reform momentum, foreign interest and strong domestic participation.
For long-term investors, the fundamentals are compelling. As Vietnam Holding say, “Vietnam has moved from frontier promise to emerging market reality”.