MSCI August 2025 Index Review – FPT and HCM added to the MSCI Frontier Market Index

On the other hand, SJS (Saigon Construction Corporation) was removed from the basket. Following this rebalancing, the total number of constituents in the index increased to 238, highlighting MSCI’s trend of broader capital allocation across emerging and frontier markets.

Notably, Vietnam continues to assert its dominance in the Frontier Market group, accounting for the highest country weight at 26.1% as of July 31st — nearly double that of Morocco (15%) and almost three times that of Romania (11.3%). This underscores the growing appeal of Vietnam’s stock market among foreign investors, driven by high liquidity and stable macroeconomic growth prospects.

By sector allocation, Financials hold the largest share at 38.3% of the MSCI Frontier Market Index, followed by Real Estate (9.9%), Industrials (9%), and Materials (8.5%). Vietnam currently has two representatives among the top 10 largest weighted stocks: Hòa Phát Group (HPG) and Vinhomes (VHM), each accounting for approximately 2.2% of the index.

Concurrently, MSCI also announced changes to the MSCI Frontier Markets Small Cap Index. This round saw 28 stocks added and 11 removed, bringing the total to 428 constituents. Vietnam made a strong impression with 9 new additions: EVG, HPX, HLD, IMP, PTB, SGR, TVB, ILB, and TTF. Meanwhile, NBB and VDP were removed. As a result, Vietnam’s weight in the Small Cap Index rose to 28.8%, far ahead of Bangladesh (16%) and Pakistan (9.6%). However, no Vietnamese stock made it into the top 10 largest holdings in this basket.

According to MSCI’s announcement, these changes will take effect after the close of trading on August 26 and will be implemented from August 27, 2025. The next review is expected in early November 2025, a key point for investors monitoring foreign capital inflows into the Vietnamese stock market.

The inclusion of FPT and HCM not only elevates the global visibility of these companies but also potentially unlocks new foreign capital inflows, improves market liquidity, and reinforces investor confidence in Vietnam's capital markets moving forward.

— According to Banking Times —