Liquidity hits nearly five-month low as market declines
The Vietnamese stock market experienced a widespread decline on November 6, marked by weak demand and cautious investor sentiment.
The Vietnamese stock market experienced a widespread decline on November 6, marked by weak demand and cautious investor sentiment.
The World Bank has projected short-term inflows of about 5 billion USD before and after the upgrade from both passive and active investors. In the long term, investment inflows may rise to as much as 25 billion USD by 2030, provided that Vietnam maintains strong reform momentum and macroeconomic stability.
FTSE is set to officially reclassify Vietnam from Frontier Market to Secondary Emerging Market on September 21, 2026, following an interim review in March 2026.
The upgrade is expected to take effect on September 21, 2026, subject to an interim assessment in March 2026 to confirm Vietnam’s progress in improving market access through global brokers.
Vietnam values its international partnerships, including with the UK, Finance Minister Nguyen Van Thang noted, urging UK companies, funds and financial institutions, and those from Europe and worldwide, to continue expanding investment, transferring know-how, sharing management experience and advancing green finance and technology to realise Vietnam’s sustainable development vision.
FTSE Russell acknowledged Vietnam’s recent reforms as effective steps toward meeting upgrade criteria.
Vietnam’s stock market has emerged as a key driver of economic growth, serving as a channel for medium- and long-term capital mobilisation and a launchpad for businesses to enhance governance and financial transparency, said insiders.
PM Pham Minh Chinh demanded a more effective fiscal policy to complement monetary efforts, directing the central bank to focus on exchange rates, interest rates and risk management.
The HNX-Index maintained an upward trend throughout July, closing at 266.34 points, up 16.19% from the previous month. This was its highest close in July.
Experts warned that excessive capital concentration in high-risk sectors like real estate and securities, risks of imbalances and non-performing loans could increase.
After months of subdued activity, foreign investors accelerated their disbursements, net buying more than 8.5 trillion VND (325 million USD) across all exchanges. This marks the highest level of net buying from foreign investors since early 2023, signalling a renewed confidence in the market.
An official of FTSE Russell has expressed confidence in a long-term partnership with Vietnam through 2045, when the country aims to emerge as a modern industrialised nation with a transparent, advanced and globally integrated financial market.
The planned issuance is expected to raise roughly 9 trillion VND (equivalent to 344.53 million USD), providing the national carrier with additional capital to improve liquidity, reinforce its financial foundation, and advance its post-pandemic recovery and growth strategy.
Vietnam's stock market is poised to capitalise on significant opportunities brought by Resolution 68, which opens a new growth horizon for the private sector. To fully leverage these advantages, experts emphasise that businesses must proactively enhance corporate governance and foster innovation.
The drive toward listing is part of a broader strategy among banks to strengthen capital bases.
According to data from FiinTrade and SSI Research, ETFs posted a net outflow of over 210 billion VND between May 12 and 16, marking the second consecutive week of withdrawals.
The Ministry of Finance (MoF) is actively implementing a comprehensive plan to enhance market capabilities and meet the stringent criteria set by international rating agencies such as FTSE Russell and MSCI.
Foreign holdings in Malaysian equities increased to 19.69% as at Dec 31, 2024, from 19.54 percent in 2023, where 32.08 percent (131.22 billion MYR) of which consisted of holdings by non-strategic investors.
Minister of Finance Nguyen Van Thang emphasised the importance of accelerating development efforts in 2025 to harness resources and fully exploit potential, aiming for sustainable economic breakthroughs.
Vietnam will create favourable conditions for the stock market to develop more breakthrough and innovative products, enhancing the quality of market offerings and attracting more investors.