Vietnam anticipates elevating its stock market from frontier to emerging status by 2025, which could attract billions of USD from foreign investors. However, a major obstacle is the limited foreign ownership available in many large-cap stocks, complicating their ability to attract substantial capital inflows. Notable stocks such as HPG, VHM, and VIC face restrictions due to state control or strategic shareholders holding significant stakes. Potential candidates for upgrade include VNM, VHM, VIC, HPG, SSI, MSN, VCI, and DGC, needing to meet FTSE and MSCI criteria including liquidity and transparency. Despite high expectations, there’s a contrast with the continuous foreign net selling pressure, particularly on HoSE, highlighting a mismatch between hopes and reality. The article stresses the need for investors to carefully consider the upgrade’s impact on individual stocks amidst ongoing capital outflows from frontier-focused funds.
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