All 91 Vietnam Equity Funds Post July Losses, Outflows Hit 4.2T VND

Overview

All 91 equity funds in Vietnam reported negative returns in July 2026, with average performance down 7.4% as the VN-Index fell 6.7%. Net outflows from equity funds exceeded 4.2 trillion VND, driven mainly by closed-end funds and ETFs, with VEIL accounting for most of the withdrawals. The broad-based decline hit high-weight stocks such as PNJ, TCB, and MWG, pressuring ETF performance.

Key Facts

• Average equity fund performance fell 7.4% in July 2026; all 91 funds posted negative returns.
• VN-Index declined 6.7% in July, with 77.6% of listed stocks falling.
• Net outflows from equity funds exceeded 4.2 trillion VND in July, up 13.8% month-on-month.
• Closed-end funds saw net redemptions of over 4.3 trillion VND, 13.2x June’s level and up 266% year-on-year.
• VEIL accounted for 96.7% of closed-end fund outflows, with net redemptions of 4,192 billion VND in July; cumulative 7-month outflows reached 11,965 billion VND.
• VEIL’s NAV stood at 34,993 billion VND as of July 31, 2026.
• Cumulative 7-month average fund performance fell 8.9%, versus +12.2% in the same period of 2025 and -2.7% for the VN-Index.
• VNDAF was among the few active funds with positive performance (+1.2%) in July, helped by holdings like VNM and NVL.

What Happened

According to data from Fiingroup, the average performance of equity funds dropped 7.4% in July 2026, with all 91 funds posting negative returns. The VN-Index fell 6.7%, and the correction was broad-based, with 77.6% of stocks declining. The magnitude of losses varied significantly by portfolio composition: ETFs tracking the VNDiamond index were hit hard due to sharp declines in high-weight constituents such as PNJ, TCB, and MWG.

Active funds with heavy exposure to large-cap stocks suffered more, as leading names in banking, real estate, securities, steel, retail, and consumer staples fell sharply. Only a few foreign active funds fared better than the index, thanks to holdings in rising stocks like GMD (+4.6%) or defensive names like VIC and VHM. The July correction pulled average cumulative 7-month performance down to -8.9%, a stark contrast to the +12.2% gain in the same period of 2025 and worse than the VN-Index’s -2.7%.

Market Context

Vietnam’s equity market experienced a sharp correction in July 2026, with the VN-Index falling 6.7%. The sell-off was broad, affecting most sectors and leading to negative returns across all equity funds. High-weight stocks in key indices, such as PNJ (HOSE), TCB (HOSE), and MWG (HOSE), were particularly pressured, dragging down ETF performance. The outflows, especially from VEIL, reflect investor risk aversion and profit-taking after a strong first half. The market’s recent price action shows PNJ closing at 37,300 VND, TCB at 31,000 VND, MWG at 72,700 VND, and VIC at 202,000 VND as of August 20, 2026.

Strategic Significance

The July performance data underscores the vulnerability of equity funds to concentrated positions in large-cap stocks. The outflows from VEIL, driven by its share buyback program announced in late 2025, highlight how corporate actions can influence fund flows and market sentiment. For long-term investors, the divergence between funds like VNDAF, which maintained positive returns through selective stock picking, and the broader negative performance suggests that active management and stock selection are becoming more critical in a volatile market. The correction also tests the resilience of Vietnam’s equity market, with the VN-Index’s cumulative decline of -2.7% year-to-date versus the -8.9% average fund performance indicating that funds have underperformed the index.

What to Watch

• Q3 2026 earnings reports from key holdings like PNJ, TCB, and MWG, which will influence fund performance and flows.
• VEIL’s buyback program progress and any further redemption patterns, as it remains the largest driver of outflows.
• VN-Index recovery or further decline in August and September, which will test whether the July correction is a pause or a trend reversal.
• Foreign investor net flows in the coming months, as the 168 million USD net outflow in July may signal continued risk-off sentiment.
• Regulatory or policy responses from the State Securities Commission or the State Bank of Vietnam that could affect market liquidity or investor confidence.