return icon Vietnamnet.vn

Foreign capital returns, Vietnamese investors pour money into stock market

Foreign capital is expected to return to Vietnam, where stock prices are the most attractive in the region.
 

 

 

The prices of shares increased again in recent trading sessions, thus helping the VN Index regain the historic peak of 1,520-1,536 points. 

According to SSI Research, foreign capital flows have improved since the second half of March and will come back soon thanks to fiscal and monetary policies of Vietnam and other countries, and exchange rate stability.

Foreign investors tend to disburse money for bank stocks and stocks benefiting from goods prices and the reopening of the economy.

Vietnam has set a clear roadmap for reopening the economy. It has fully reopened its borders and made a policy shift, considering Covid-19 as an endemic disease instead of a pandemic. This has helped regain foreign investors’ confidence.

In terms of stock valuation, the estimated P/E of Vietnam’s stocks in 2022 is 14.1x, which is much lower than that in other regional markets. Analysts believe this is a good valuation for long-term investment.

In March, geopolitical tensions and the moves of large central banks continued to affect investors’ sentiments, and cash flow to Vietnam was influenced by these moves. ETF had strong net withdrawals in early March and saw mild improvements in the second half of the month.

The total ETF capital flow was minus (-) VND650 billion in March. Four large funds continued seeing net withdrawals, including VFM VN30 (- VND435 billion), SSIAM VNFIN Lead (- VND200 billion), VanEck (- VND447 billion) and FTSE Vietnam (-VND130 billion).

Meanwhile, VFM VNDiamond and Fubon still saw cash inflows.

There have been positive signs of foreign investors coming back since late March thanks to the purchasing power of VFM VNDiamond after the depository certificates of the fund successfully made an IPO in Thailand under the name DR "DIAMOND ETF".

The fund was listed and put into transactions on March 31, and is expected to help attract Thai investments into Vietnam.

In Q1, ETF capital still saw a net inflow of VND172 billion, with the purchasing power mostly from Fubon and VFM VNDiamond.

Active funds continued seeing net withdrawal, VND588 billion in March, lower than that of February (- VND968 billion), and cash flow saw positive signs in the second half of March. 

In Q1, active funds withdrew VND1.1 trillion, a mild improvement compared with the net sale of VND3 trillion of the same period of 2021. Foreign investors’ net sale was VND7.7 trillion in Q1, a decrease of 55 percent.

M. Ha

MORE NEWS

A unique cave awaits explorers in Quang Binh Province

Va Cave in the core zone of the Phong Nha- Ke Bang National Park in Quang Binh Province, with its unique stalagmites and stalactites, is a natural beauty waiting to be discovered by explorers.

The most important 'economic corridors' for next 10-30 years

The national planning draft for 2021-2030 with a vision towards 2050 focuses on the formulation and development of economic corridors, dynamic zones, large cities and economic zones associated with the national infrastructure framework.

Artisans strive to keep traditional craft alive

Artisan Tran Van Ban is busy all day from early in the morning to the evening. He is carving out beautiful mooncake molds to serve people's demands for the Mid-Autumn Festival which is approaching in the next few weeks.

Goalkeeper Dang Van Lam returns home to join a V.league 1’s club

Goalkeeper Dang Van Lam is set for a return to V.League 1 after touching down in HCM City with his agent.

VN Aviation Business Association proposal raising domestic airfare ceiling

The president of the Vietnam Aviation Business Association (VABA) has proposed to adjust the ceiling fare for domestic airlines to promote the industry's recovery.

More than 251 million doses of COVID-19 vaccines administered in Vietnam

More than 251 million doses of COID-19 vaccines have been administered to Vietnamese people of all ages across the country, including nearly 100,000 doses given on August 14, according to the Ministry of Health.

Foreign experts learn from Vietnam’s biphasic in vitro maturation technology

A group of four Australian doctors and experts visited My Duc Hospital in Phu Nhuan district, Ho Chi Minh City, to learn from the Vietnamese side’s experience in biphasic in vitro maturation (CAPA-IVM) from August 13-14.

HCM City ready to reactivate COVID-19 treatment hospitals

The Department of Health of Ho Chi Minh City has recently requested its medical facilities to get plans readied for the acceptance and treatment of COVID-19 patients in the context of increases in the number of new cases.

How many supermarkets are in Hanoi, HCM City?

In some localities in the country, no new supermarket has been set up over the last seven years.

Can the Vietnamese metaverse classroom compete with Facebook and Google?

With beautiful graphics, colors and materials, Vietnam’s Elite Meta is dreaming of competing equally with giants Facebook and Google.

PM thanks Russian scientists for preservation of President Ho’s embalmed body

Russian experts have joined the preservation of President Ho Chi Minh’s body for over 50 years since he passed away in 1969.

Shares to keep upward trend this week: brokers

Vietnamese shares are forecast to continue their upward trend this week as profit-taking pressure is cooling down significantly.

Emulating the ambitions of Singapore’s high-tech vision

With its vibrant economic development, Vietnam offers an unparalleled investment destination for Singaporean corporations.

Entertainment and cultural events of the week (August 15-21)

Upcoming entertainment and cultural events in Vietnam's major cities on August 15-21.

My, Nghi represent Việt Nam at Simone Asia Pacific Cup

Nguyen Thao My and Ngo Bao Nghi will battle it out for personal and team glory at the inaugural Simone Asia Pacific Cup in Indonesia later this month.
back_to_top