Vietnamese investors are hopeful for a market upgrade from frontier to emerging status by 2025, potentially attracting up to 800 million USD from passive investors and 2 billion USD from other funds. However, actual capital allocation may face challenges due to the limited foreign ownership limits (room) of many large stocks. While some stocks, including HPG, VHM, and VIC, have significant room available, foreign ownership is still heavily influenced by state and strategic shareholders. Many large stocks are reported to have exhausted foreign room, complicating foreign investments. Stringent criteria like free float and Foreign Ownership Limit (FOL) will be closely examined during the upgrade process. Potential benefiting stocks include VNM, HPG, VIC, SSI, and MSN, yet continuous net selling pressure from foreign investors remains impactful, with a cumulative net selling value exceeding 100 trillion VND on HoSE over the past year.
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