Vietnam's Stock Market Sees Record Net Selling by Foreign Investors Ahead of FTSE Russell Review
Vietnam's stock market today has seen significant net selling by foreign investors since August, totaling over VND86 trillion ($3.26 billion) in the first nine months of the year. This strong selling occurred ahead of FTSE Russell's market classification review scheduled for October 8, Vietnam time. The Ministry of Finance has issued several circulars and decrees to attract more foreign capital and improve market transparency.
Vietnam has been working to upgrade its market status from 'frontier' to 'emerging', with regulators implementing reforms in 2024-2025. The Ministry of Finance issued Circular 68/2024/TT-BTC and Circular 18/2025/TT-BTC to allow foreign institutional investors to trade without having 100% of funds pre-deposited. Additionally, Decree 245/2025/ND-CP was issued to strengthen transparency, protect investors, and attract more foreign capital.
The KRX information technology system was launched in early May 2025, integrating stock exchanges and the Vietnam Securities Depository and Clearing Corporation. Experts predict that foreign capital inflows will improve in Q4 as foreign exchange pressures ease and the Fed cuts rates further.
Despite recent net selling, Vietnam's stock market continues to attract attention due to its ongoing reforms and potential market status upgrade. The government and regulators are actively working to improve market conditions and attract more foreign investment. As the market classification review approaches, investors await the outcome and potential significant inflows from emerging market-tracking funds.
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