27 Funds Net Buy VCB for 4th Month; HDB, Oil & Gas Stocks in Focus

Overview

In July, 27 open-ended funds net bought Vietcombank (VCB) for the fourth straight month, while HDBank (HDB) and oil & gas stocks PVD, PVS, BSR also attracted net buying. However, the broader fund complex increased cash holdings and faced rising redemptions, with total NAV down 9.8% month-on-month.

Key Facts

• 27 funds net bought VCB in July, the fourth consecutive month of net buying, with the most participating funds among all stocks.
• HDB led net buying from open-ended funds including DCDS, VFMVSF, and EVESG.
• PVD was net bought for a third straight month by foreign ETFs (VanEck Vietnam, Global X MSCI Vietnam) and open funds DFVN-CAF, EVESG, DCDS.
• 25 of 36 funds increased cash weight in July, up from 16 in June; DCDS raised cash to 27.4% from 11.2%.
• Total NAV of Vietnam-domiciled equity funds fell 9.8% to ~VND 247,800 billion, down VND 26,900 billion from end-June.
• Net redemptions reached nearly VND 5,000 billion in July, up 16.7% month-on-month, the third straight monthly increase.
• Average fund performance fell 7.4% in July; all 91 equity funds posted negative returns.

What Happened

According to fund flow data for July, open-ended funds shifted back to a defensive posture, with 25 of 36 funds increasing cash allocations. This coincided with a 6.7% decline in the VN-Index, prompting fund managers to trim equity exposure. Notably, large funds with NAV between VND 1,500–2,800 billion reversed to higher cash, with DCDS lifting cash to 27.4% from 11.2%.

Despite the cautious stance, selective buying persisted. HDB attracted net purchases from DCDS, VFMVSF, and EVESG, while oil & gas stocks PVD, PVS, and BSR saw inflows. PVD was bought for a third month by foreign ETFs and local open funds. VCB stood out with 27 funds net buying, including DCDS, EVESG, MAFEQI, and VFMVSF, marking four consecutive months of net inflows.

The data also showed rising redemptions, with total net outflows of nearly VND 5,000 billion in July, up 16.7% from June. Most of this came from closed-end funds, particularly VEIL’s ~VND 4,100 billion buyback program. Excluding VEIL, equity fund outflows were modest at over VND 91 billion, as open-ended funds turned net buyers.

Market Context

HDB closed at VND 27,400 on August 24, 2026, on HOSE. The banking sector has faced pressure from the broader market correction, yet HDB’s net buying by funds suggests selective interest. VCB, also on HOSE, closed at VND 59,200, with persistent fund accumulation despite the market downturn. Oil & gas names PVD (HNX), PVS (HNX), and BSR (UPCOM) have benefited from sector-specific catalysts and foreign ETF flows. The VN-Index’s 6.7% July decline and 2.7% drop over seven months contrast with fund NAV shrinkage of 9.8% in July, reflecting both market losses and redemptions.

Strategic Significance

For long-term investors, the persistent net buying in VCB and HDB signals confidence in Vietnam’s banking sector fundamentals despite short-term volatility. VCB’s four-month accumulation by 27 funds underscores its status as a core holding, while HDB’s appeal to open-ended funds may reflect its growth prospects and valuation. The oil & gas group’s continued inflows, especially PVD, indicate a strategic play on energy recovery and offshore services. However, the overall rise in cash and redemptions suggests fund managers are positioning defensively, which could limit near-term upside. Investors should weigh these selective inflows against the broader trend of risk-off sentiment.

What to Watch

• Q3 fund reports for further changes in cash ratios and net buying patterns.
• VCB and HDB quarterly earnings for confirmation of fundamental strength.
• Oil & gas sector developments, including new contracts or drilling activity for PVD, PVS, BSR.
• VN-Index recovery or further decline, which may influence fund flows.
• VEIL’s buyback completion and its impact on overall fund redemptions.