Net foreign selling of Vietnamese stocks may ease ahead of potential market upgrade in 2025

[HO CHI MINH CITY] Robust foreign direct investment (FDI) inflows have stood in contrast with a shrinking proportion of shares owned by foreign investors in Vietnam’s stock market. This proportion fell to a 10-year low following consistent net selling since 2023.

This points to foreign investors’ divergent views on the country’s short-term and long-term growth drivers.

Quan Trong Thanh, head of research at Maybank Investment Bank Vietnam (MSVN), said: “Normally when FDIs come in, it would raise the attention for portfolio investments to follow.”