The trading session on October 14 opened with explosive growth.

By 9:30 AM, the VN-Index had climbed nearly 25 points (+1.4%) to 1,790 points. The VN30 index surged 40 points (+2%) to 2,051 points.

Liquidity improved significantly as domestic capital returned, despite continued net selling from foreign investors.

Just one day earlier, on October 13, the VN30 index surpassed the 2,000-point mark for the first time ever, reaching a record 2,012 points.

It continued its upward trajectory, demonstrating the strength of blue-chip stocks in the wake of FTSE Russell’s announcement that Vietnam’s stock market had been upgraded from frontier market to secondary emerging market status, effective next year.

Many stocks surged significantly.

Shares of Vingroup (VIC), founded by billionaire Pham Nhat Vuong, hit the ceiling again, rising 14,300 VND to 219,700 VND per share (approximately $8.95), far surpassing the recent 200,000 VND mark.

Vinhomes (VHM) shares jumped 5,200 VND to 129,400 VND per share ($5.27).

Stocks in the banking, securities, and real estate sectors also rallied.

Securities firm SSI rose 1,250 VND to 42,600 VND ($1.73) per share. CII gained 900 VND to 29,550 VND ($1.20) per share.

The upgrade from FTSE Russell is seen as a historic milestone, marking Vietnam’s capital market maturity after more than a decade of reform efforts. It also signals the start of a “new cycle” for the Vietnamese stock market.

David Sol, Global Policy Director at FTSE Russell, highlighted two key implications of the market upgrade.

First, Vietnam has met stringent standards in terms of liquidity, settlement mechanisms, transparency, and foreign investor accessibility.

Second, the upgrade boosts Vietnam’s appeal to global investors. The number of funds tracking the FTSE Emerging Markets index is significantly larger than those tracking frontier markets.

Vietnam is expected to attract approximately $2 billion in both active and passive capital inflows.

VNDirect Securities estimates that once officially classified as a secondary emerging market, Vietnam could receive around $1.5 billion from mutual funds and ETFs tracking FTSE indices. Including active capital flows, this figure could rise to between $3.4 billion and $6 billion.

The stock market is also supported by a strong macroeconomic foundation, with Q3 GDP growth reaching 8.23%.

In addition, a hot real estate market and high property prices have prompted some capital to shift toward alternative investment channels.

Rising gold prices and limited trading opportunities have also led investors to favor mainstream markets like stocks.

Last week, the cryptocurrency market experienced a major shock as prices of many digital assets plummeted.

Bitcoin at one point lost nearly 15% in a short period. Several coins dropped by over 90%, leading to massive liquidations and account losses. This volatility has driven capital back to more stable channels like equities.

J.P. Morgan recently forecast that the VN-Index could reach 2,200 points within the next 12 months - a 30% increase from current levels.

The firm’s report emphasized that the market upgrade would trigger a wave of passive capital inflows.

J.P. Morgan estimates that global index funds could inject about $1.3 billion into Vietnam’s stock market, equivalent to a 0.34% weight in the FTSE Emerging Market All Cap Index.

Manh Ha