Foreign investors remain optimistic about Vietnamese stock market

From being net sellers in the first nine months of 2022, foreign investors have become the driving force supporting the Vietnamese stock market in the last few months, and the inflows are expected to continue this year.
Foreign investors remain optimistic about Vietnamese stock market ảnh 1

Foreign capital is expected to continue to flow into the stock market as foreign investors' confidence remains strongly.(Photo: VNA)

In 2022, this group net disbursed more than VND29.2 trillion (US$1.2 billion) to the market, while it has net sold nearly VND18.8 trillion and set a record net selling value of over VND62.2 trillion in 2021.

In November alone, more than VND16 trillion in net disbursed cash flow from foreign investors was significantly supported by exchange-traded fund (ETF) capital inflows into the market, primarily from the Fubon ETF and the VNDiamond Index-based ETF.

A study by BIDV Securities Company (BSC) analysing over US$50 billion owned by foreign investors on the Vietnamese stock market showed that more than half of foreign ownership is owned by strategic investors. This group usually holds stocks for the long term.

The second group consists of investment funds, typically from Europe, that invest the majority of their assets in Vietnamese securities. These investors are attached to the development of the market, and the investment depends on the amount of money raised from investors.

There are also a group of index funds, which account for more than 10% of the number of shares held by foreign investors and operate quite flexibly, and a group of investors who buy securities through P-notes (participatory notes).