Foreign Net Selling in Vietnam Persists in July, Regional Flows Improve

Overview

Foreign investors intensified net selling on Vietnamese exchanges in July, with HOSE recording nearly VND 11.6 trillion in net outflows, bringing the 7-month cumulative total to VND 91.4 trillion. This contrasts with improving foreign capital flows across several Asian markets, as regional investors return to the region.

Key Facts

• HOSE saw net foreign selling of nearly VND 11.6 trillion in July, lifting the 7-month cumulative outflow to VND 91.4 trillion.
• The cumulative outflow approaches the record annual net selling of nearly VND 111 trillion recorded in 2025.
• Foreign investors sold net on 18 of 23 trading sessions in July, with the peak on July 6 at nearly VND 2.8 trillion.
• VHM was the most sold stock on HOSE, with net selling of nearly VND 4 trillion in July.
• Other heavily sold stocks included TCB, PNJ, and VPB, each with net selling exceeding VND 1 trillion.
• VNM was the only stock with net buying above VND 1 trillion on HOSE.
• On HNX, foreign investors recorded their strongest monthly net selling of the year at nearly VND 182.6 billion, concentrated in IDC, PVS, MBS, and SHS.

What Happened

Foreign investors continued their aggressive net selling on Vietnamese exchanges in July, extending a trend that has persisted since the start of the year. According to data from VietstockFinance, HOSE saw net foreign outflows of nearly VND 11.6 trillion in July, bringing the cumulative 7-month total to VND 91.4 trillion. This is approaching the record annual net selling of nearly VND 111 trillion seen in 2025, and foreign investors have not recorded a single month of net buying so far this year.

The selling pressure was broad-based, with VHM leading the decline at nearly VND 4 trillion in net outflows. Other major sell-offs included TCB, PNJ, and VPB, each exceeding VND 1 trillion. In contrast, VNM was the only stock with net buying above VND 1 trillion. On HNX, foreign investors also recorded their strongest monthly net selling of the year, with net outflows of nearly VND 182.6 billion, focused on IDC, PVS, MBS, and SHS.

Despite the heavy selling, there are signs of easing. In the final days of July, foreign investors turned net buyers on HOSE in matched orders, although including block trades, they remained net sellers for the month. This suggests that selling pressure may be cooling, but the overall trend remains negative.

Market Context

Vietnam’s stock market has been under pressure from persistent foreign selling, which has weighed on the VN-Index. In July, the index fell below 1,800 and 1,700 points, briefly touching 1,650 before recovering to close near 1,736. The selling has been particularly heavy in large-cap stocks like VHM (HOSE), which saw its price decline despite a recent rebound. On August 5, VHM closed at VND 157, up 2.94% on the day, but the stock remains under pressure from foreign outflows. Other affected tickers include TCB, PNJ, and VPB, all on HOSE, which have also seen significant foreign selling. The broader market trend is mixed, with regional flows improving but Vietnam lagging behind.

Strategic Significance

The persistent foreign selling in Vietnam, despite improving regional flows, highlights structural challenges that may deter international investors. The concentration of selling in large-cap stocks like VHM suggests that foreign investors are rebalancing portfolios or reducing exposure to Vietnamese equities. This trend could have long-term implications for market liquidity and valuation, particularly for real estate and banking sectors. However, the recent narrowing of outflows and the shift to net buying in matched orders in late July may indicate that the selling pressure is nearing exhaustion. For long-term investors, the key question is whether Vietnam can attract foreign capital back as regional flows improve, which would require addressing issues such as market access, corporate governance, and regulatory transparency.

What to Watch

• Monthly foreign flow data for August to see if the selling pressure continues to ease.
• Q2 earnings reports from VHM and other heavily sold stocks, which may influence foreign investor sentiment.
• Any regulatory changes or policy announcements aimed at improving foreign investor access to Vietnamese markets.
• Regional flow trends, particularly in India and Thailand, which may signal a shift in global capital allocation.
• The VN-Index’s ability to hold above key support levels, which could attract technical buying.