Vietnam’s stock market was upgraded in 2026, creating expectations of larger foreign capital inflows. However, analysts say that without deeper reforms the country may struggle to keep that money flowing.

According to the 2026 Vietnam Capital Market Forum, Vietnam must remove foreign‑ownership barriers, improve the quality of listed companies, and strengthen transparency and corporate governance to sustain capital inflows. These steps are seen as the foundation for a more attractive market.

Wanming Du, director of index policy for Asia‑Pacific at FTSE Russell, explained that foreign‑ownership restrictions limit international investors’ access and lower Vietnam’s weighting in emerging‑market portfolios. She added that increasing the number of high‑quality listed firms, diversifying sector representation, and expanding the domestic institutional investor base would raise Vietnam’s index weighting and draw more capital.

The forum also highlighted that transparent information disclosure, predictable policies, and stronger regulatory enforcement are needed to boost investor confidence. Building a larger pool of pension funds, insurance companies and other domestic investors could provide stable, long‑term capital for the market.

Choi Sang Ah, financial consul at the Consulate General of South Korea in Ho Chi Minh City, said South Korea’s reforms in transparency, corporate governance and dividend procedures helped it overcome the so‑called ‘Korea Discount.’ She suggested that Vietnamese companies could apply similar measures to build trust with foreign investors.

In short, removing ownership limits, raising corporate standards, and ensuring clear, predictable rules are crucial for Vietnam to attract and retain foreign investment. Without these reforms, the country risks losing its competitive edge in the race for emerging‑market capital.