Foreign investment has returned vigorously to Vietnam’s stock market, with a net investment of over 9.2 trillion VND since early July. This resurgence is driven by the anticipated upgrade of Vietnam’s market by FTSE by the end of this year. Large-cap stocks with available foreign room such as VCB, VIC, VHM, FPT, HPG, VNM, and MSN are likely to attract more foreign capital. Some stocks like FPT have opened up room after a period of net selling. However, many stocks have low room due to significant holdings by large shareholders. To qualify for an upgrade, stocks must meet certain criteria, including a minimum market capitalization of 150 million USD, a minimum free float of 5%, and at least 20% foreign room. Potential beneficiaries from the upgrade include VIC, VHM, VNM, HPG, and VCB. Additionally, P-Notes are contributing to the buying power of foreign investors, highlighting a positive trend in their return to the market.
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