VCBF Fund Exits VIC Stake on Valuation, Leverage; Maintains Long-Term FPT Position

Overview

VCBF, a Vietnam-based fund manager, has liquidated its entire holding in Vingroup (VIC) during Q1 2026, driven by concerns over the conglomerate’s elevated valuation and high leverage. Simultaneously, the fund reaffirmed its long-term commitment to FPT Corporation (FPT), maintaining a core position despite near-term headwinds in the global technology sector. The moves were disclosed at VCBF’s investor meeting and detailed in its quarterly report.

Key Facts

• VCBF sold all VIC shares in Q1 2026, exiting a position held for several years.
• VIC’s market capitalization reached USD 64 billion, equivalent to approximately 12.5% of Vietnam’s GDP.
• VCBF noted VIC’s debt-to-equity ratio exceeds 2x, citing leverage as a key risk.
• The fund’s VCBF-BCF and VCBF-MGF funds posted NAV growth of 20% and 14% respectively in Q1 2026 versus end-2025.
• VCBF-BCF returned +0.3% in Q1 2026 versus the VN100 index’s -7.9%.
• FPT’s weight in VCBF-BCF declined to ~4% from 6% at end-2025, due to fund growth and price movements, not active selling.
• VCBF expects FPT’s software export revenue to grow 20-25% annually, above Indian peers.

What Happened

VCBF, managed by Vietcombank Fund Management, disclosed at its investor meeting that it had fully exited its VIC position during the first quarter of 2026. According to Mr. Nguyen Duy Anh, VCBF’s Portfolio Manager, the fund had invested in VIC based on expectations for VinFast’s success. However, after a sharp price rally, VIC’s market capitalization reached USD 64 billion, which the fund deemed unsustainable. Mr. Anh stated that VIC would need to generate approximately USD 3 billion in annual profit to justify the current valuation. Mr. Nguyen Trieu Vinh, Deputy Director of Investment, added that a P/E ratio of around 150x implies a payback period of centuries, amplifying risk if earnings disappoint.

In contrast, VCBF maintained its long-term position in FPT, with the stock representing about 4% of the BCF portfolio. Mr. Pham Le Duy Nhan, a fund representative, noted that FPT’s software export segment continues to grow at 20-25%, outperforming regional peers in India. While Q1 2026 was challenging, the fund views it as the trough and expects improvement in subsequent quarters.

Market Context

VIC shares closed at VND 177 on April 15, 2026, up 6.95% on the day, with volume of 6.36 million shares on HOSE. The stock has rallied significantly in recent months, pushing VIC’s market cap to levels that now exceed the entire market capitalization of many ASEAN peers. FPT closed at VND 75, down 1.31%, with volume of 9.51 million shares on HOSE. The broader market has been volatile, with the VN100 index declining 7.9% in Q1 2026, while VCBF’s funds outperformed.

Strategic Significance

VCBF’s exit from VIC reflects growing institutional caution toward conglomerates with stretched valuations and high leverage, particularly in the context of global EV market competition. The fund’s decision to maintain FPT underscores a conviction in Vietnam’s tech outsourcing story, which benefits from cost advantages and a skilled workforce. For VIC, the loss of a prominent institutional holder may signal reduced near-term demand, though the stock’s liquidity and retail interest remain high. For FPT, continued institutional support provides a stabilizing factor amid sector volatility.

What to Watch

• VIC’s Q1 2026 earnings release, due in late April, to assess whether profit growth can narrow the valuation gap.
• FPT’s Q2 2026 software export revenue growth rate, to confirm the expected recovery.
• Any further institutional stake changes in VIC or FPT disclosed via HOSE filings.
• VCBF’s future portfolio disclosures for potential re-entry into VIC if financials improve.
• SBV policy on lending to real estate conglomerates, which could impact VIC’s leverage profile.