MSCI is dropping Vietnamese real estate firm Nam Long Investment Corporation from its Frontier Markets Index as of the end of this month. That said, Vietnamese firms will likely still make up the bulk of the index–they currently account for about 31 percent of its weight with the next biggest contributor, Bangladesh, at 21.5 percent.
MSCI also made changes to its Vietnam Small Caps Index, dropping Everland Group, Thanh Cong Textile, and Vietnam Electricity Construction; and adding Agriculture Printing & Packing, Dam Sen Water Park, Danang Housing Investment Development, Guotai Junan Securities (Vietnam) Corp., Saigon Ground Services, Tan Tao Investment and Industry Corporation, Thanh Cong Securities, Tri Viet Asset Management Corporation, Truong Thanh Energy and Real Estate, and Vietnam National Seed Group.
Vietnam’s stock market indexes have been in the news a lot lately as the country pushes for an upgrade from a frontier to an emerging market. There are, however, a number of obstacles still standing in the local bourse’s path before an upgrade can be made and, as a result, it may still yet be languishing in MSCI’s Frontier Markets Index for some time to come.
See also: Vietnam’s Stock Market Upgrade Opportunity: Unpacked