Foreign Investors Return: VND 2,000B Net Buying in 4 Sessions

Overview

Foreign investors have shifted to net buying, accumulating nearly VND 2,000 billion over four sessions, focusing on large-cap stocks such as FPT, VIC, VHM, MBB, CTG, and PNJ. This reversal comes after a prolonged period of net selling and is fueled by expectations that FTSE Russell will upgrade Vietnam to secondary emerging market status in its September review.

Key Facts

• Foreign investors net bought VND 2,000 billion over four sessions, a rare streak after years of net selling.
• Year-to-date, foreign investors had net sold VND 92,280 billion (USD 3.54 billion) before this reversal.
• In the week of July 27-31, 2026, ETF funds saw net inflows of VND 93.2 billion, improving from net outflows of VND 84.7 billion the prior week.
• FTSE Russell is expected to announce Vietnam’s inclusion in the FTSE GEIS watch list on August 21, with a potential upgrade in September.
• MBS estimates USD 6 billion in total inflows, including active and passive funds, with USD 1.5 billion from passive ETF flows within a year.
• Excluding Vin group stocks, VN-Index P/E stands at 10.5x, a level last seen during the tariff shock.
• Foreign investors’ holdings value increased from USD 42.9 billion at end-2024 to USD 44.2 billion at end-June 2026, despite net selling.

What Happened

According to data from the Ho Chi Minh City Stock Exchange (HOSE), foreign investors have reversed their stance, net buying nearly VND 2,000 billion over the last four trading sessions. This marks a significant shift after a prolonged period of net selling that saw foreign outflows of VND 92,280 billion year-to-date. The buying was concentrated in blue-chip stocks, including FPT Corporation (FPT), Vingroup (VIC), Vinhomes (VHM), Military Commercial Joint Stock Bank (MBB), Vietinbank (CTG), and Phu Nhuan Jewelry (PNJ).

The catalyst appears to be growing expectations that FTSE Russell will announce Vietnam’s inclusion in its watch list for a potential upgrade to secondary emerging market status. The announcement is scheduled for August 21, with the official review in September. MBS Securities estimates that Vietnam could attract up to USD 6 billion in total inflows, including USD 1.5 billion from passive ETFs tracking FTSE indices. The brokerage also notes that valuations have become attractive, with the VN-Index P/E (excluding Vin group) at 10.5x, similar to levels during the tariff shock, which could further entice foreign capital.

Market Context

FPT Corporation (HOSE: FPT) closed at VND 71,500 on August 4, 2026, reflecting a period of volatility. The broader VN-Index has been under pressure, but the recent foreign buying has provided some support. Other affected tickers include VIC (VND 218,000), VHM (VND 152,900), and MBB (VND 24,400). The shift in foreign flows is a notable development for the Vietnamese market, which has experienced persistent outflows over the past year. The potential FTSE Russell upgrade is seen as a key catalyst that could attract significant passive inflows, particularly into large-cap stocks that would dominate the index weightings.

Strategic Significance

For long-term investors, the return of foreign buying signals a potential turning point for Vietnamese equities. The FTSE Russell upgrade, if realized, would not only bring immediate passive inflows but also enhance the market’s visibility and credibility among global investors. FPT, as a leading technology company with strong fundamentals, is well-positioned to benefit from increased foreign participation. The upgrade could also lead to improved liquidity and valuation re-rating across the market, particularly for blue-chip stocks. However, the sustainability of these flows depends on continued progress in market reforms and macroeconomic stability.

What to Watch

• FTSE Russell’s official announcement on August 21 regarding Vietnam’s inclusion in the watch list.
• The September review outcome, which will determine the actual upgrade and index inclusion.
• Continued foreign net buying momentum in the coming weeks, especially in large-cap stocks.
• Q2 earnings reports from FPT and other affected tickers, which could influence investor sentiment.
• Regulatory developments related to market access and trading infrastructure that could impact the upgrade timeline.