Vietnam’s Stock Market Faces Upgrade Potential, Stocks Ready for Major Investment Yet Reality is Challenging

The anticipated upgrade of Vietnam’s stock market from frontier to emerging status by 2025 draws significant interest, predicting $800 million inflow from passive investors via the FTSE index. However, while many large-cap stocks still have foreign ownership room, the reality is constrained due to state-controlled shareholders. Despite potential stocks like HPG, VHM, and VIC, many have limited foreign room available. Factors like the free float and foreign ownership limit significantly impact a stock’s eligibility for ETF inclusion. Analyses from SHS and SSI Research highlighted stocks likely to benefit post-upgrade, including VNM, VHM, and HPG. Nonetheless, continuous foreign outflows, totaling over 100 trillion VND in the past year, diminish expectations, prompting careful investor consideration.