The upgrade of Vietnam’s stock market is anticipated in 2025, potentially attracting large amounts of foreign investment. An expected $800 million from passive investors using the FTSE index and an additional $2 billion from other indices are projected to flow into the market. However, a crucial factor is the foreign ownership limit, as many large-cap stocks currently have limited availability due to state and internal shareholders holding most stakes. Popular stocks like FPT, MWG, and ACB have exhausted their foreign quota, complicating foreign investor attraction. Analysts suggest stocks like VNM, HPG, and VIC will benefit from the upgrade. Furthermore, investors must consider the impact of foreign fund outflows from the frontier market, with net selling from foreign investors reaching over 100 trillion VND on the HoSE in the past year.
Leave a Reply