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SINGAPORE, April 7 (Reuters) - FTSE Russell will upgrade Vietnam to emerging market status from frontier status in September, the index provider said in an interim review on Tuesday, the final seal of approval for the long-awaited move.

Vietnam will be added to FTSE Russell's global equity indices beginning on September 21 in a phased manner which will continue into 2027, the index provider said in a statement.

FTSE Russell had upgraded Vietnam in October to emerging market status from frontier, but that was subject to an interim review to determine whether enough progress had been made by the country in enabling access to global brokers.

The decision puts Vietnam on par with markets like India and China and follows market-friendly reforms by the Communist-ruled Southeast Asian country. It will also allow many passively managed funds to buy shares of locally listed companies.

Vietnam's benchmark stock index .VNI is down 6% so far this year as the war in the Middle East has sapped sentiment. It surged about 41% in 2025, its strongest gain in eight years, as the export-reliant nation posted economic growth of 8%.