Foreign Investors Sell VND 587.6B, VIC and VHM Lead Net Selling

Overview

Foreign investors continued their heavy net selling on the Ho Chi Minh Stock Exchange (HOSE) on August 17, offloading a net VND 587.6 billion (approximately USD 23.5 million). Real estate stocks, particularly Vingroup (VIC) and Vinhomes (VHM), were the primary targets, while the VN-Index closed slightly lower at 1,727.46 points. The selling pressure weighed on large-cap banking and Vingroup ecosystem stocks, but was partially offset by buying in consumer, technology, and energy sectors.

Key Facts

• Foreign investors net sold VND 587.6 billion (USD 23.5 million) on the day; on a matched-basis, net selling was VND 607.1 billion.
• Top net-sold stocks by foreign investors: VIC, VHM, ACB, SSI, GMD, VCB, MSB, VPB, STB.
• VN-Index closed at 1,727.46 points, down 1.62 points, after falling more than 10 points intraday.
• Total matched volume on all three exchanges was nearly VND 15,000 billion.
• Retail investors net bought VND 395.8 billion (matched: VND 287.9 billion), with top buys in SSI, VHM, ACB, VJC, SHB, STB.
• Proprietary trading desks net bought VND 234.5 billion (matched), focusing on banks and technology stocks.
• Foreign investors net bought food & beverage and IT stocks, with top buys including TCB, VNM, HDB, NVL, KDH, FPT.

What Happened

In the first trading session of the week, the Vietnamese stock market opened under pressure, with the VN-Index at one point losing more than 10 points as selling intensified in Vingroup-related stocks and large-cap banks. However, selling pressure eased toward the close, allowing the index to trim losses and finish just 1.62 points lower at 1,727.46. Market breadth improved, with 149 gainers versus 152 decliners.

According to the article, foreign investors were net sellers of VND 587.6 billion, with matched-order net selling at VND 607.1 billion. The real estate sector bore the brunt, with VIC and VHM leading the sell-off. Meanwhile, retail investors stepped in as net buyers, and proprietary trading desks also added support. The article notes that liquidity remained thin, with total matched value across all three exchanges at nearly VND 15,000 billion, indicating cautious sentiment.

Market Context

VIC closed at VND 198,000 on August 17, while VHM closed at VND 68,200, both on HOSE. The foreign selling pressure on these real estate giants reflects a broader trend of foreign investors reducing exposure to Vietnamese large caps, particularly in real estate and banking. The VN-Index’s modest decline despite heavy foreign selling suggests domestic buying is absorbing some of the pressure, but the market remains range-bound with low liquidity. The divergence in flows—foreigners selling real estate while buying consumer and tech—highlights a rotation toward defensive and growth sectors.

Strategic Significance

For long-term investors, the persistent foreign selling in VIC and VHM underscores ongoing concerns about the real estate sector’s outlook, including regulatory and liquidity challenges. However, the fact that retail investors and proprietary desks are buying these dips may indicate that domestic players see value at current levels. The market’s resilience, despite foreign outflows, suggests that the sell-off is not driven by fundamental deterioration but rather by global portfolio rebalancing. Investors should monitor whether foreign selling persists or stabilizes, as it could signal a shift in sentiment toward Vietnamese equities.

What to Watch

• Foreign net selling activity in the coming sessions: whether the pace accelerates or slows.
• VIC and VHM price action: if they can hold key support levels despite continued foreign selling.
• VN-Index liquidity: whether total matched value rebounds above VND 20,000 billion to confirm a recovery.
• Q3 earnings reports from VIC and VHM, due in October, for updates on sales and cash flow.
• Any regulatory announcements regarding real estate or foreign ownership limits that could affect foreign flows.