FTSE Russell's October 2024 report has kept Việt Nam on its watchlist for a potential upgrade to Secondary Emerging Market status. Although Việt Nam has been on the watchlist since 2018, it still faces challenges, particularly the complex process for foreign investors to open accounts and the 'Settlement Cycle' requiring pre-funding before trades.

In response, Việt Nam's government, led by Prime Minister Phạm Minh Chính, has committed to reforms that will meet FTSE's upgrade criteria by 2025. These include regulatory changes to ease foreign investment access and improve transaction processes. In September 2024, the Ministry of Finance introduced new regulations aimed at simplifying trading for foreign investors.

If Việt Nam achieves the upgrade, it could see capital inflows of up to $1.7 billion from exchange-traded funds, with even more potential from active funds. The next review will take place in March 2025, determining the country's progress toward this significant status.