Vietnam Sets Sights on MSCI After Clinching FTSE Russell Upgrade

Vietnam’s years of capital reforms helped win an emerging-market upgrade from FTSE Russell, but securing MSCI Inc.’s more coveted designation may prove a tougher challenge.

FTSE’s reclassification, announced Tuesday, will move the Southeast Asian nation out of the frontier-market category and into a cohort that includes India, China and Indonesia. The shift is expected to boost Vietnam’s visibility among global investors and open the door to capital inflows, particularly from passive funds.