Vietnam Upgraded To Secondary Emerging Market Status
FTSE Russell formally upgraded Vietnam to Secondary Emerging Market status on September 21. Vietnamese stocks will be added to the FTSE Global All Cap Index and related indices in phases, with the process due to complete in September 2027.
Vietnam has upgraded its trading infrastructure, streamlined entry procedures for foreign investors and issued Decree 245/2025/ND-CP, which sets new disclosure standards. Those reforms were among the grounds for FTSE's decision, which is expected to draw more international institutional investors into the market.
The upgrade also opens a direct channel to international capital for domestic companies, particularly those planning IPOs or capital raises. Tapping it, however, requires paperwork that can survive due diligence: transparent financial statements and regular disclosures, published in both Vietnamese and English.
Foreign Investors Turn Buyers Ahead Of FTSE Reclassification
FTSE Russell will formally classify Vietnam as a Secondary Emerging Market from September 21, 2026, in a four-stage transition running through 2027. FTSE estimates the reclassification could bring up to $6 billion (VND156 trillion) of fresh capital into Vietnamese equities as index-tracking funds rebalance their portfolios.
That money will flow to the stocks FTSE admits to its index. The index provider has identified 27 Vietnamese stocks eligible for the FTSE Global All Cap Index, among them Vingroup (VIC), FPT (FPT) and Hoa Phat (HPG). SSI Research expects ETF flows to concentrate in VPBank, Vinhomes, FPT and Hoa Phat in the first round of buying, while Vingroup could see net outflows of about $28 million (VND728 billion).
In practice, foreign money is only beginning to return. Foreign investors bought a net VND1.42 trillion ($54.6 million) of Vietnamese stocks over the week. Since the start of the year, however, they have sold a net VND93.6 trillion (more than $3.6 billion) — roughly 66 times the week's purchases.
That is a reversal from last year, when Vietnam was Southeast Asia's best-performing stock market. The VN-Index has gained only about 1.4% so far this year, trailing both Thailand and Singapore.
Beyond the upgrade, investors are watching three other factors: foreign ownership limits, free-float ratios and plans for a central counterparty clearing mechanism, which acts as an intermediary guaranteeing settlement between buyers and sellers. Keeping foreign capital coming will require Vietnam to resolve these issues and further upgrade its trading infrastructure. The clearing mechanism, if implemented successfully, could also pave the way for MSCI, another index provider, to consider an upgrade of its own.
Vietnam Targets 500 Research-Based Startups By 2035
The Ministry of Science and Technology has approved a national innovation and entrepreneurship program for 2026-2035, designed to strengthen the startup ecosystem and connect resources across it. By 2030, the program targets at least 250 startups built on technology development, research commercialization and intellectual property, rising to 500 by 2035.
By the same 2030 deadline, it aims to support at least 200 startups at the incubation and growth stages, with at least 30% of them in high-tech or strategic technology fields, and to build a network of 500 experts backing the ecosystem, doubling to 1,000 by 2035.
Vietnam currently counts about 4,000 startups, 208 investment funds and 84 incubators, and ranks 50th globally in the 2026 Global Startup Ecosystem Index.
The program marks a shift toward market discipline: startups are expected to prove they can commercialize their products and compete. In exchange, they receive stage-specific support and additional routes to capital.
Beacon Fund Backs Vipep, An Organic Spice Maker Exporting To 16 Countries
Beacon Fund has extended a medium-term loan to Viet Pepper Joint Stock Company (Vipep), a Vietnamese producer and processor of natural and organic spices. Vipep will use the money to expand its plant, add processing lines and lift output for both the domestic and export markets.
Founded in 2012, the company now makes more than 100 spice products, exports to over 16 countries and supplies retail chains including AEON and GO!, as well as food manufacturers such as Masan and Cholimex.
Vipep works with nearly 1,400 smallholder farmers nationwide, helping them improve farming techniques, convert to organic production that meets export standards and secure steady demand for their crops.
For small and mid-sized companies that already have products, markets and a supply network in place, a medium-term loan of this kind creates room to expand capacity and move into higher-value processing rather than selling raw material.
3V Partners Targets $300 Million For Debut Private Equity Fund
3V Partners and Hanovation have unveiled plans to raise $300 million (VND7.8 trillion) for their first private equity fund, VGG I. The fund is targeting a first close of $50 million to $100 million (VND1.3-2.6 trillion) in 2026, with fundraising set to wrap up in 2027.
VGG I plans to deploy $20 million to $50 million per portfolio company, targeting established Vietnamese businesses valued between $50 million and $300 million across agriculture, tourism, technology, logistics, advanced manufacturing, IT services, gaming and consumer goods. 3V Partners is currently in talks with six potential portfolio companies.
The investments sit within a strategy the firm calls "Go Global," built on three goals: building Vietnamese companies capable of competing internationally, helping them expand into foreign markets and creating new industry leaders through strategic partnerships.
What sets VGG I apart from venture funds is that it does not back early-stage startups. Beyond capital, the fund stresses hands-on involvement, bringing operating experience, partner networks and long-term funding to help portfolio companies scale and move overseas.
Genesia Ventures is an early-stage venture capital firm operating in Japan and Southeast Asia, with a strong belief in the long-term potential of Vietnam’s digital economy. Beyond providing capital, the fund actively supports startups through strategic guidance and connections to a broader regional network.