Foreign ETFs reverse to net outflows of VND 228B in late August 2026

Overview

Foreign exchange-traded funds (ETFs) reversed to net outflows of approximately VND 228 billion during the trading week of August 24-28, 2026, after a modest inflow of VND 8.4 billion the prior week. The selling pressure was concentrated among foreign-domiciled funds, with Fubon FTSE Vietnam ETF leading the redemptions. Major Vietnamese blue chips, including Vingroup (VIC), Hoa Phat Group (HPG), Vinhomes (VHM), Sacombank (STB), and SSI Securities (SSI), were the primary targets of net selling.

Key Facts

• Foreign ETFs recorded net outflows of about VND 228.0 billion in the week of August 24-28, 2026, reversing the prior week’s net inflow of VND 8.4 billion.
• Fubon FTSE Vietnam ETF led outflows with VND 92.9 billion net redeemed.
• Other foreign funds with net outflows: Xtrackers Vietnam Swap UCITS ETF 1C (-VND 77 billion), The Global X MSCI Vietnam ETF (-VND 33 billion), CSOP FTSE Vietnam 30 ETF (-VND 19.6 billion).
• Domestic ETFs saw mixed flows: VFMVN Diamond ETF and VEM VN30 ETF recorded net outflows of VND 7.0 billion and VND 3.3 billion, respectively, while MAFM VN30 ETF saw net inflows of over VND 7.0 billion.
• Thai investors net sold 460,000 depositary receipts based on VFM VN30 ETF (E1VFVN3001), equivalent to VND 16.4 billion, and 270,000 DRs based on VFMVN Diamond ETF (FUEVFVND01), equivalent to VND 9.4 billion.
• Cumulative net outflows from ETFs since the start of 2026 reached about VND 5.7 trillion, down 63.6% from the same period in 2025.
• As of August 31, 2026, total net asset value of ETFs allocated to Vietnam stood at approximately VND 58.6 trillion, down 11.6% from end-2025.

What Happened

According to data compiled by VnEconomy, the week of August 24-28, 2026 saw a sharp reversal in foreign ETF flows. After a brief period of net inflows, foreign-domiciled funds withdrew capital aggressively. Fubon FTSE Vietnam ETF was the largest seller, with net redemptions of VND 92.9 billion. Other major foreign ETFs, including Xtrackers Vietnam Swap UCITS ETF 1C and The Global X MSCI Vietnam ETF, also recorded significant outflows.

The selling was broad-based across sectors, with the ETFs net selling the most in VIC, HPG, VHM, STB, and SSI during the week. On September 3, 2026, Fubon FTSE Vietnam ETF alone saw net outflows of about VND 46.4 billion, with notable net sales in VIC (-40,000 shares, -VND 9.8 billion), VHM (-84,000 shares, -VND 6.2 billion), HPG (-162,000 shares, -VND 3.5 billion), VCB (-40,000 shares, -VND 2.3 billion), and MSN (-32,000 shares, -VND 2.2 billion).

Market Context

On the HOSE, VIC closed at VND 244,500 on September 3, 2026, while HPG, VHM, and STB closed at VND 21,600, VND 73,400, and VND 74,500, respectively. The market has been under pressure from global factors, including renewed Middle East tensions and rising oil prices, which dampened investor sentiment. The VN-Index saw a broad decline on September 3, with foreign investors recording their largest net selling session in 24 sessions. The ETF outflows add to the headwinds, though year-to-date outflows of VND 5.7 trillion are significantly lower than the VND 15.6 trillion recorded in the same period of 2025, suggesting a slowdown in foreign ETF redemptions.

Strategic Significance

The persistent, albeit reduced, foreign ETF outflows reflect ongoing caution among international investors toward Vietnamese equities. The concentration of selling in large-cap names like VIC, HPG, and VHM indicates that foreign funds are reducing exposure to cyclical and real estate sectors, which are sensitive to interest rates and global demand. For long-term investors, the moderation in outflows (down 63.6% year-on-year) could signal that the selling pressure is abating, but the reversal in late August suggests that sentiment remains fragile. The ability of Vietnamese authorities to stabilize the macro environment and address geopolitical risks will be crucial in determining whether foreign ETF flows turn positive again.

What to Watch

• Weekly ETF flow data for the first weeks of September 2026 to see if the outflows continue or reverse.
• Foreign net selling activity on the broader market, particularly in VIC, HPG, and VHM, as reported by the stock exchange.
• Updates on geopolitical developments in the Middle East and their impact on oil prices and global risk appetite.
• Quarterly earnings reports from affected companies (VIC, HPG, VHM, STB, SSI) for Q3 2026, due in October, to assess fundamental resilience.
• Any regulatory changes or policy measures from the State Securities Commission (SSC) aimed at attracting foreign investment.