Vietnamese Stock Market’s Hope for Upgrade, Stocks Ready for Big Capital Flow ‘Seem Better than They Are’

Vietnam is anticipating an upgrade from frontier to emerging market status by 2025, which could attract about $800 million from passive investors using the FTSE index and $2 billion from other funds. However, this opportunity is challenged by the limitations on foreign ownership in many large stocks. While there are potential stocks like HPG, VHM, VIC, the actual availability for foreign investors is quite low. Hot stocks like FPT and MWG have limited room, making it difficult for the market to receive the expected large capital flows. Criteria like the free float ratio and foreign ownership limit (FOL) will affect whether stocks can enter the index. Some promising stocks identified for the upgrade include VNM, HPG, VIC, and VND, with strong growth prospects. However, persistent net selling pressure from foreign investors recently complicates the situation.