Foreign Investors Net Sell Over 600 Billion VND, VN-Index Recovers to 1,800

Overview

Foreign investors net sold over 600 billion VND on the matching order book on June 10, with banking stocks bearing the brunt of selling. The VN-Index recovered 10.66 points to 1,800 points on improved liquidity of 21,000 billion VND, suggesting short-term buying support after a recent correction.

Key Facts

• Foreign investors net sold 603.6 billion VND on the matching order book (total net sell 542.9 billion VND including block deals).
• VN-Index rose 10.66 points (+0.60%) to close at 1,800 points.
• Matching order value on all three exchanges reached 21,000 billion VND, up sharply from recent sessions.
• Banking stocks were the main sell target: top sold stocks included MBB, VPB, SSI, VHM, STB, VIX, FPT, ACB, TCB.
• Foreign investors bought most in Construction & Materials and Tourism & Entertainment sectors; top buys: VJC, CII, VNM, SHB, VIC, VCB, MWG, BAF, LPB, VCG.
• Individual investors net sold 132.6 billion VND overall but net bought 75.5 billion VND on matching orders, focusing on banking stocks.
• Proprietary trading desks net sold 29.8 billion VND.

What Happened

After a correction that erased over 100 points from the peak, the Vietnamese stock market staged a recovery on June 10. The VN-Index gained 10.66 points to reclaim the 1,800 level, with breadth improving significantly: 207 stocks advanced versus 105 declined. The recovery was broad-based, with buying spreading beyond large caps to multiple sectors, including banking, real estate, manufacturing, and consumer goods.

Despite the positive price action, foreign investors remained net sellers, offloading 603.6 billion VND on the matching order book. Banking stocks were the primary target, with MBB, VPB, SSI, VHM, STB, VIX, FPT, ACB, and TCB among the most sold. On the buy side, foreign investors favored Construction & Materials and Tourism & Entertainment, with top purchases including VJC, CII, VNM, SHB, VIC, VCB, MWG, BAF, LPB, and VCG.

Market Context

The VN-Index’s recovery to 1,800 comes after a sharp pullback from recent highs, with improved liquidity (21,000 billion VND) indicating returning buying interest. However, foreign selling pressure persists, particularly in banking stocks, which have been a key driver of the index. The broader market faces headwinds from inflation concerns, potential monetary tightening, and prolonged liquidity declines. The recovery suggests that valuations have become more attractive, but sustainability remains uncertain.

Strategic Significance

The persistent foreign net selling, especially in banking stocks, reflects ongoing caution among international investors toward Vietnamese equities amid global monetary tightening and domestic inflationary pressures. The concentration of selling in banking—a sector heavily tied to economic growth and credit expansion—signals concerns about asset quality and margin compression. Conversely, foreign buying in construction, materials, and tourism stocks (e.g., VJC, CII) may indicate selective interest in sectors benefiting from infrastructure spending and post-pandemic travel recovery. The divergence between foreign and individual investor flows (individuals buying banks) highlights a tactical disagreement on near-term prospects.

What to Watch

• Continued foreign selling in banking stocks: monitor daily net flow data for MBB, VPB, STB, ACB, TCB.
• VN-Index’s ability to hold above 1,800: a sustained break below could signal renewed weakness.
• Upcoming economic data: inflation, credit growth, and SBV policy signals.
• Q2 earnings reports from banks and key stocks: any guidance on NIM and loan growth.
• Foreign buying in VJC and CII: whether it sustains or reverses.