Foreign investors net sell VND 13.8 trillion in April as FTSE Russell confirms upgrade

Overview

Foreign investors net sold VND 13,755.4 billion (approx. USD 550 million) in April 2026, with banking stocks bearing the brunt of selling, according to exchange data. Despite the outflow, the VN-Index surged 10.73% to 1,854.10 points, driven primarily by Vingroup (VIC) and Vinhomes (VHM). The selling occurred even as FTSE Russell confirmed Vietnam’s market upgrade, underscoring persistent foreign disengagement.

Key Facts

• Foreign net selling totaled VND 13,755.4 billion in April 2026, with order-matched net selling of VND 7,379.4 billion.
• VN-Index rose 179.61 points (+10.73%) to close at 1,854.10, recovering from a 10.95% drop in March.
• Average daily matched order turnover on HOSE fell 25.21% month-on-month to VND 20,460 billion.
• Banking stocks were the most sold by foreigners, including FPT, VHM, VCB, BID, ACB, VPB, MBB, BSR, CTG.
• Foreign buying focused on basic resources and financial services: HPG, VIC, MSN, FUEVFVND, SSI, VRE, LPB, TCH, MWG, DXG.
• Domestic individual investors net bought VND 9,179.1 billion, mainly in banks.
• Proprietary trading desks net bought VND 9.1 billion overall, but net sold VND 771.8 billion on an order-matched basis.

What Happened

According to data from HOSE and the Vietnam Securities Depository, foreign investors accelerated net selling in April 2026, with total net sales reaching VND 13,755.4 billion. The selling pressure was concentrated in the banking sector, with notable net sales in FPT, VHM, VCB, BID, ACB, VPB, MBB, BSR, and CTG. On the buying side, foreigners accumulated HPG, VIC, MSN, and several ETFs and securities stocks.

The VN-Index’s 10.73% gain masked weak breadth, as the rally was heavily dependent on VIC and VHM, both part of the Vingroup ecosystem. Market liquidity declined sharply, with average daily matched turnover on HOSE falling 25.21% from March and 20.90% below the five-month average. The FTSE Russell upgrade confirmation, announced during the month, did not reverse the foreign outflow.

Market Context

VIC closed at VND 177 on April 15, up 6.95% on high volume, while VHM rose 6.83% to VND 138. In contrast, HPG fell 1.75% to VND 28, and MSN declined 0.64% to VND 77. The divergence highlights a two-tier market where foreign selling in banks and other sectors is offset by concentrated domestic and institutional buying in Vin-group stocks. The VN-Index’s recovery remains fragile, lacking broad-based participation.

Strategic Significance

The persistent foreign net selling despite the FTSE Russell upgrade suggests that structural factors—such as global rate expectations, Vietnam’s currency pressures, or sector-specific concerns—outweigh index inclusion benefits. The concentration of buying in VIC and VHM indicates that domestic investors and proprietary desks view these stocks as safe havens or proxies for a recovery story. For long-term investors, the divergence between foreign and domestic flows warrants monitoring of foreign ownership limits and potential policy responses to attract foreign capital.

What to Watch

• Foreign net selling trends in May 2026, especially in banking stocks, to see if the outflow accelerates or stabilizes.
• Q1 2026 earnings reports for VIC and VHM, due in the coming weeks, to validate the rally’s fundamental support.
• Any regulatory changes or SBV interventions aimed at stabilizing the currency or capital markets.
• FTSE Russell’s official reclassification timeline and any associated passive fund flows.
• Domestic individual investor behavior: whether their buying of banks continues or shifts.