Foreign Capital Floods Back into Vietnam’s Stock Market: Which Stocks Can Ride the Wave?

Foreign investors are returning to the Vietnamese stock market with over 9.2 trillion VND net purchased since early July, as the prospect of an upgrade by FTSE becomes clearer, possibly occurring by the end of the year. Large inflows typically target large-cap stocks with available foreign ownership room. Stocks like VCB, VIC, VHM, BID, FPT, HPG, VNM, and MSN still have capacity, though many may be limited by state ownership or insiders. Criteria for FTSE inclusion include a minimum market capitalization of 150 million USD, a minimum free float of 5%, and at least 20% foreign ownership available. Stocks like VIC, VHM, VNM, HPG, VCB, and SSI are expected to benefit from the upgrade. Additionally, P-Notes are contributing significantly to foreign buying, characterized by aggressive trading focused on large-cap stocks.

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