Hanoi (VNS/VNA) - Equity funds in Vietnam recorded their largest outflow in two years in August, according to data from FiinGroup.
Out of 74 equity funds, 47 funds, including open-ended, closed-end and ETFs, faced withdrawals worth 8.5 trillion VND (321 million USD). Net inflows at the remaining 27 funds, worth only VNĐ793 billion, were not enough to offset the loss.
The total net outflow reached 7.6 trillion VND, the highest since August 2023 and even above the record in July 2024.
The heaviest pressure came from Fubon FTSE Vietnam ETF, K Vietnam Equity and VEIL. Dragon Capital’s ETFs – DCVFMVN30 (E1VFVN30) and DCVFMVN Diamond (FUEVFVND) – also saw large outflows, mainly from Thai investors cutting holdings through depositary receipts.
In August, Thai investors sold 643.7 billion VND of DRs based on E1VFVN30 and VNĐ938.4 billion of DRs based on FUEVFVND, accounting for 87% and 84% of the funds’ outflows. Most sales targeted large-cap stocks such as banks (ACB, VCB, TCB) and retailers (MWG).
In the past two years, equity funds have seen net withdrawals of nearly VNĐ65 trillion, equal to 45% of foreign investors’ total net selling on the stock market, showing rising pressure despite positive market movements.
The VN-Index jumped nearly 12% in August, led by banking, securities and real estate stocks.
However, bond funds moved in the opposite direction. They posted a net inflow of 759 billion VND in August, the third straight month of gains, though 41.7% lower than in July.
Over the past 12 months, bond funds attracted nearly 6.5 trillion VND, mostly domestic money. Large funds such as MBAM, ABBF and DCIP led the trend, with MBAM alone reporting over 257 billion VND in August, the highest since its launch.
Fund managers also shifted cash holdings. In August, 21 out of 34 funds cut their cash ratios, reflecting more positive sentiment.
Big funds like VFMVSF, VLGF and DCDS reduced cash, while others such as VESAF and VOF raised cash for the second month to lock in profits.
On the stock side, MBB was the most bought stock by funds, reversing July’s selling. Demand came from PYN Elite, which raised its stake to 11.8%, and several ETFs. Smaller banks such as OCB, HDB and STB also attracted buying, with STB seeing PYN Elite increase its stake to 18.8%.
Meanwhile, TCB and ACB continued to be sold for the third month in a row, with TCB leading in net sales. SSI also returned to the top-sell list after two months of net buying./.
MoF proposes 20% tax on capital gains from securities and equity transfers
Under the draft revised Law on Personal Income Tax, the ministry is suggesting a 20% tax rate on profits earned by resident individuals from securities and equity transfers.
