Foreign ETFs Net Sell VND 5.4 Trillion YTD; VCB, HPG Lead Outflows

Overview

Foreign exchange-traded funds (ETFs) continued to see net redemptions in the week of August 10-14, 2026, contributing to a year-to-date net outflow of approximately VND 5.4 trillion. The selling was led by Fubon FTSE Vietnam ETF and VanEck Vietnam ETF, with the most heavily sold stocks including Vietcombank (VCB), Hoa Phat Group (HPG), HDBank (HDB), VPBank (VPB), and Tien Phong Bank (TPB). Domestic ETFs recorded inflows, but the overall trend indicates that international capital has not yet returned decisively.

Key Facts

• Foreign ETF funds net sold approximately VND 5.4 trillion (USD 216.14 million) year-to-date as of August 14, 2026.
• Fubon FTSE Vietnam ETF recorded net outflows of VND 3,110.5 billion YTD; VanEck Vietnam ETF saw VND 1,369.0 billion in redemptions.
• In the week of August 10-14, Fubon FTSE Vietnam ETF net redeemed VND 14.9 billion, while KraneShares Dragon Capital Vietnam Growth Index ETF saw its first outflow since March 2026, at VND 29.9 billion.
• Domestic ETFs saw inflows: SSIAM VNX50 ETF (+VND 60.2 billion), VFMVN Diamond ETF (+VND 30.5 billion), Vina Capital VN100 ETF (+VND 5.1 billion), and SSIAM VN30 ETF (+VND 4.8 billion).
• Thai investors net sold 220,000 depositary receipts based on VFM VN30 ETF (VND 7.6 billion) and 60,000 DRs on VFMVN Diamond ETF (VND 2.1 billion).
• Total net assets of ETFs allocated to Vietnam stood at VND 56.3 trillion as of August 14, down 15.0% from end-2025.
• The most heavily sold stocks by ETFs in the week were VCB, HPG, HDB, VPB, and TPB.

What Happened

According to data compiled from ETF fund flows, the week of August 10-14, 2026 saw a modest net outflow of VND 4.3 billion from the ETF complex, a sharp slowdown from the VND 94.2 billion redeemed the prior week. Foreign ETFs continued to lead the redemptions, with Fubon FTSE Vietnam ETF shedding VND 14.9 billion (versus VND 45.4 billion the previous week). Notably, KraneShares Dragon Capital Vietnam Growth Index ETF recorded its first net outflow since March 2026, at VND 29.9 billion, while CGS Fullgoal Vietnam 30 Sector Cap ETF reversed to an inflow of VND 9.6 billion.

Domestic ETFs provided a counterweight, with SSIAM VNX50 ETF leading inflows at VND 60.2 billion, followed by VFMVN Diamond ETF (+VND 30.5 billion), Vina Capital VN100 ETF (+VND 5.1 billion), and SSIAM VN30 ETF (+VND 4.8 billion). However, KIM GROWTH VN30 ETF and VFM VN30 saw outflows of over VND 56 billion and nearly VND 7 billion, respectively. The data, sourced from fund flow reports, indicates that while domestic participation is improving, the cumulative foreign outflow remains substantial.

Market Context

Vietcombank (VCB), listed on HOSE, closed at VND 58,000 on August 18, 2026, while HPG closed at VND 21,000, HDB at VND 26,950, and VPB at VND 24,900. The persistent foreign ETF selling has weighed on these large-cap banking and steel names, which are heavily weighted in major indices. The VND 5.4 trillion YTD outflow represents a 65.3% decline from the same period in 2025, but the lack of a clear reversal in international flows keeps the market’s upside potential limited. Domestic ETF inflows, while positive, have not been sufficient to offset the foreign pressure, and the overall market trend remains dependent on broader liquidity improvements.

Strategic Significance

For long-term investors, the sustained foreign ETF outflows highlight a structural headwind for Vietnamese equities, particularly for high-float names like VCB and HPG that are core holdings in international funds. The concentration of selling in banking and steel suggests that foreign investors are reducing exposure to cyclical and financial sectors amid global risk-off sentiment or profit-taking. However, the slowdown in weekly outflows and the emergence of domestic inflows could signal a stabilization point. If foreign flows reverse, these beaten-down large caps could see significant upside, but until then, the market lacks a strong external catalyst. The data underscores the importance of monitoring foreign capital trends as a key indicator for market direction.

What to Watch

• Weekly ETF flow data for the weeks following August 14, 2026, to see if foreign outflows continue to decelerate or reverse.
• Any announcements from Fubon FTSE Vietnam ETF or VanEck Vietnam ETF regarding changes in fund size or investment strategy.
• Quarterly earnings reports from VCB, HPG, HDB, VPB, and TPB for Q3 2026, which could influence foreign investor sentiment.
• Regulatory updates from the State Securities Commission of Vietnam (SSC) on market access or foreign ownership limits.
• Broader regional capital flows into emerging markets, as Vietnam’s ETF flows often correlate with global risk appetite.