Foreign investors have become the driving force behind the Vietnamese stock market over the last few months, and the inflows are expected to continue this year.
HANOI: From being net sellers in the first nine months of 2022, foreign investors have become the driving force behind the Vietnamese stock market over the last few months, and the inflows are expected to continue this year.
In 2022, this group net disbursed more than 29.2 trillion Vietnamese dong (US$1.2bil or RM5.1bil) to the market, while it has net sold nearly 18.8 trillion Vietnamese dong (RM3.4bil) and set a record net selling value of over 62.2 trillion Vietnamese dong (RM11.2bil) in 2021.
In November alone, more than 16 trillion Vietnamese dong (RM2.89bil) was disbursed from foreign investors, significant support of exchange-traded fund (ETF) capital inflows into the market, primarily from the Fubon ETF and the VNDiamond Index-based ETF.
A study by BIDV Securities Company (BSC) analysing over US$50bil (RM212bil) owned by foreign investors on the Vietnamese stock market showed that more than half of it was owned by strategic investors. This group usually holds stocks for the long-term.
The second group comprised investment funds, typically from Europe, that invest the majority of their assets in Vietnamese securities.
These investors are attached to the development of the market, and the investment depends on the amount of money raised from investors.
There is also a group of index funds, which account for more than 10% of the number of shares held by foreign investors and operate flexibly, and a group of investors who buy securities through participatory notes.
The market’s drop in October and the first half of November prompted a cash inflow into the Vietnamese stock market. Positive cash flow spread across many ETFs Viet Nam News/Ann.
