We expect retail investors to drive growth in ADTV (average daily trading value) in the near term, while institutional investors should become a more significant driver in the long term.

We expect FTSE Russell to announce an upgrade for Vietnam to secondary emerging market (EM) status in 2025. We estimate that this could trigger passive inflows of around USD1bn, and potential inflows of USD7.5bn could result from EM upgrades by both FTSE and MSCI. In addition, an EM upgrade would open Vietnam to a wider universe of actively managed funds, implying scope for further net inflows.

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