Vietnam Stocks: Foreign Inflows and FTSE Russell Upgrade Drive VN-Index Recovery

Overview

Vietnam’s stock market is showing signs of a sustained recovery as foreign investors increase net buying in blue-chip stocks such as Vingroup (VIC), FPT Corporation (FPT), Vinhomes (VHM), and Vietcombank (VCB). The FTSE Russell upgrade, which added Vietnamese stocks to its indices, is a key catalyst. The VN-Index has rebounded sharply from its recent low and is approaching a technical resistance level at 1,850 points.

Key Facts

• VN-Index rose approximately 113 points in one week, from a low of 1,725 to a high of 1,838 on August 28.
• The index closed at 1,832 points at the end of August, leaving room to test the 1,850-point resistance.
• Foreign investors recorded net buying for four consecutive sessions through August 28.
• Notable net buying was seen in VIC, FPT, VHM, and VCB.
• FTSE Russell announced the inclusion of Vietnamese stocks in its indices, triggering a 30-point jump in VN-Index on the announcement day.
• The FTSE Russell upgrade implementation period runs until September 21, with about three weeks of expected foreign inflows.
• MBS analyst Lê Ngọc Hưng suggests the VN-Index has formed a short-term bottom in the 1,712–1,728 range.

What Happened

Market commentary from MB Securities (MBS) indicates that the VN-Index is likely to continue its recovery in early September, despite possible volatility near the previous peak. Analyst Lê Ngọc Hưng noted that recent price action supports the view that a short-term bottom has been formed. The recovery is underpinned by improving market breadth and a return of domestic buying interest after the holiday period.

Foreign investors have turned net buyers, with four consecutive sessions of net buying through August 28. This marks a shift toward alignment between domestic and foreign flows. The FTSE Russell upgrade, which added Vietnamese stocks to its indices, has been a key catalyst, prompting a 30-point rally on the announcement day. VIC, FPT, VHM, and VCB have seen significant net buying from foreign investors as part of this trend.

Market Context

Vingroup (VIC) trades on HOSE and closed at 236,000 VND on September 2, 2026. The broader market recovery has lifted blue-chip stocks, with VIC benefiting from both foreign inflows and its status as a large-cap constituent in FTSE Russell indices. The VN-Index’s rebound from the 1,725–1,838 range suggests strong momentum, but the 1,850-point level is a near-term resistance. The FTSE Russell upgrade process, which runs until September 21, is expected to support continued foreign buying in index-heavy names like VIC.

Strategic Significance

The FTSE Russell upgrade is a structural catalyst that could drive sustained foreign inflows into Vietnamese equities, particularly large-cap stocks with high free-float and liquidity. For Vingroup, this means increased foreign ownership and potential index-fund buying, which could support its valuation. The alignment of domestic and foreign flows suggests improving market sentiment, but the sustainability of the recovery depends on interest rates remaining low and the absence of external shocks. The upgrade process also signals Vietnam’s progress toward emerging market status, which could attract longer-term institutional capital.

What to Watch

• VN-Index’s ability to break and hold above the 1,850-point resistance level.
• Continuation of foreign net buying in VIC, FPT, VHM, and VCB through the FTSE Russell implementation period ending September 21.
• Domestic liquidity trends after the holiday period, as indicated by trading volumes on HOSE.
• Interest rate movements in the coming months, as any uptick could dampen equity market recovery.
• Any updates from FTSE Russell regarding Vietnam’s potential upgrade to secondary emerging market status.