Vietnam's equity market began entering FTSE Russell's emerging-market indexes on Monday, marking the culmination of a reform drive aimed at improving trading infrastructure and overseas investor access. The inclusion could channel as much as $6 billion into the Southeast Asian economy, with additions taking place in four tranches through September 2027. Twenty-seven listed companies are joining the FTSE All-Cap Index, while six large- and mid-cap stocks are also entering the FTSE All-World Index, making Vietnam the 49th market in that benchmark. The benchmark stock index opened 0.54% higher, led by banks, before giving back some gains. Foreign investors bought a net 2.7 trillion dong ($104 million) of equities last week but remain net sellers of roughly 91 trillion dong this year. The first tranche covers 10% of eligible stocks in September 2026, followed by 20% in March 2027 and 35% each in June and September 2027. HSC estimates passive buying from the first tranche at about $200 million, while Vanguard plans to increase its Vietnam exposure to about $2.5 billion over the next few years. Vietnam's economic fundamentals have also strengthened, with second-quarter GDP growth of 8.3%, aggregate second-quarter net profit growth of 45.8% among companies representing 99% of Ho Chi Minh Stock Exchange capitalization, and August exports of $54.9 billion. HSC projects earnings per share to rise 26% in 2026 and 12% in 2027, with the market trading at about 9.1 times forward earnings. The upgrade has renewed expectations of eventual MSCI emerging-market status, although foreign ownership caps, free-float constraints and market-access requirements remain issues. A central counterparty clearing mechanism expected in 2027 is viewed by investors as an important step toward meeting MSCI's requirements, while the government's reform blueprint targets MSCI emerging-market status and an investment-grade sovereign rating by 2030.