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.

The next step — winning an MSCI upgrade by 2030 is a stated goal — will require Vietnam to lift restrictions on foreign ...