Foreign capital to return to Vietnam soon: Mirae Asset CEO
Vietnam’s efforts to achieve its GDP growth target of "at least 8%", stable macroeconomic balances, and imminent prospect of a stock market status upgrade will help bring foreign capital back to the Vietnamese bourses soon, said Kang Moon Kyung, CEO of Mirae Asset Securities.

Kang Moon Kyung, CEO of Mirae Asset Securities. Photo courtesy of “Pho Tai Chinh” (Financial Street) talkshow.
Global capital flows are trending towards net inflows for equity and bond funds. However, the pace is slowing down and investors have become more cautious due to unpredictable global trade policies, he said.
Kang Moon Kyung cited Bloomberg data which shows that global exchange traded fund (ETF) capital flows in 2024 surged by 91% to nearly $1.758 trillion, the highest level since the peak in 2021. More than 70% of this capital flowed into equities, doubling compared to the same period last year.
The U.S. and China are the main destinations for these flows. In particular, the U.S. market saw an impressive $833 billion, soaring nearly 140% from the previous year and accounting for more than 66% of the total ETF inflows into equities, driven by the attraction of large tech companies like Apple, Nvidia, and the AI trend.
By the end of 2024, capital flows tended to shift further towards China, with the value doubling from the previous year to $131 billion.
For bonds, ETF flows into this channel also rebounded, increasing by 34% to $405 billion in 2024. The U.S. remained the top destination, accounting for 67% of the net inflows.
In contrast, ETF flows into bonds in Europe saw a 26% decline after three consecutive years of growth. In the first two months of 2025, ETF flows showed more diversification and shifting amidst uncertainties surrounding U.S. President Donald Trump’s policies.
However, the U.S. continued to attract global ETF flows in both equity and bond markets. On the other hand, capital seemed to be withdrawing from China, with a net outflow of $6.7 billion.
At the "Pho Tai chinh" (Financial Street) talkshow on Monday, Kang Moon Kyung stated that there are several reasons for these developments.
First, the U.S. economy continued to maintain strong GDP growth with inflation on a downward trend. In particular, large-cap tech companies continued to thrive thanks to AI.
This made the U.S. stock market a “magnet” for capital. However, the slower-than-expected interest rate cuts by the U.S. Federal Reserve and a strong USD posed significant challenges for other markets.
As for China, after several economic stimulus measures were announced, foreign capital strongly returned in the second half of 2024, reaching over $54 billion. However, foreign capital is now reversing due to unpredictable challenges arising from the trade war.
Kang noted that global investors are currently following U.S. President Trump’s new policies, and the USD may remain strong due to the "America First" strategy. Increasing protectionism may lead to inflationary pressures, changing the actions of the Fed. Therefore, key factors to watch this year will be the Fed's interest rate cuts and the USD's impact on other currencies.
According to the Mirae Asset Securities CEO, the Vietnamese stock market, with advantages such as the expected economic growth of over 8%, stable macroeconomic balances, and the imminent prospect of a market status upgrade will draw foreign capital back soon.
Mirae Asset says Vietnam is still a magnet for foreign direct investment (FDI). FDI disbursement reached $25 billion in 2024, and $1.5 billion in January 2025. The country remains attractive due to its low production costs, abundant labor force, and strategic position in the global supply chain.
Additionally, the Vietnamese government is committed to attracting FDI by improving infrastructure, boosting public investment disbursement, enhancing electricity supply through the Power Development Plan VIII, and establishing funds to support investments in science, technology, and innovation, particularly in chips and semiconductors.
However, foreign indirect investment (FII) has shown a net outflow since April 2023 and into early 2025, due to the widening interest rate differential between Vietnam and the U.S., which has put pressure on the exchange rate, he stated.
Kang Moon Kyung believed that foreign investors will remain cautious until the interest rate differential narrows further. However, Vietnam has many factors to attract foreign capital in the near future.
According to the CEO, the clear driving forces are the government’s target to grow GDP by at least 8% in 2025 and efforts to have its market status upgraded to an emerging market this year through reforms to improve the legal framework, infrastructure (especially the KRX system), and corporate governance standards.
Particularly, the opportunity to upgrade the market status to “emerging” could lead to a revaluation of Vietnam's stock market, attracting new capital from funds and ETFs that track this index. Furthermore, Vietnam's stock market is currently attractive compared to many global markets, thanks to high economic growth and positive business profit prospects.
Global rating firm FTSE Russell is expected to upgrade Vietnam to an emerging market in September 2025, which could help the country attract an estimated $6 billion in investment. As for Morgan Stanley Capital International’s (MSCI) upgrade in 2026, amendments to Decree 155 and the issuance of guidance for the newly approved Securities Law will be crucial factors in the coming period.
The Vietnamese government is actively developing the financial market, including increasing the stock market capitalization to 100% of GDP and the bond market size to 20% of GDP by 2025, he added.
Kang Moon Kyung noted that the stock market capitalization has decreased from nearly 100% of GDP to around 60% after a sharp correction in 2022. Therefore, Vietnam’s stock market still has significant room to grow alongside the economy.
- Read More
Japanese retailer Aeon to debut another northern Vietnam shopping mall by end-2026
Japanese-backed Aeonmall Vietnam is ramping up construction on its Aeon Mall Ha Long project in Quang Ninh province, home to Ha Long Bay, with an aim to open it to the public by end-2026.
Industries - Tue, September 16, 2025 | 3:54 pm GMT+7
Hanoi terminates Vinaxuki auto plant project, repurposes land for commercial complex
A long-stalled automotive manufacturing project by Xuan Kien Auto JSC (Vinaxuki) has been officially terminated by Hanoi authorities, and the reclaimed land in Phuc Thinh commune will be repurposed for a new commercial and service complex.
Industries - Tue, September 16, 2025 | 2:44 pm GMT+7
Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout
Authorities in the central province of Quang Tri are evaluating a proposal from Power Generation JSC 1 (EVNGENCO 1), a subsidiary of state utility Vietnam Electricity (EVN), to take over the Quang Tri thermal power plant project, following the withdrawal of Thai investor EGATi.
Energy - Tue, September 16, 2025 | 1:44 pm GMT+7
Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers
Amata VN, the Vietnam arm of Thailand’s leading industrial park developer Amata, has approved a plan for its subsidiary Amata City Long Thanh Urban JSC (ACLT) to sell its remaining 51% stakes in two entities to local developer Novaland-linked buyers.
Real Estate - Tue, September 16, 2025 | 12:19 pm GMT+7
Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister
Vietnam has fulfilled the criteria for a stock market status upgrade by FTSE Russell through reforms aimed at facilitating foreign investment inflows into its market, said Minister of Finance Nguyen Van Thang.
Economy - Tue, September 16, 2025 | 9:36 am GMT+7
Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry
The Ministry of Finance is proposing a key reform that would allow commercial banks to invest in and distribute mutual fund certificates, as part of a broader plan to restructure the investor base and foster the development of Vietnam’s fund management industry.
Finance - Tue, September 16, 2025 | 8:00 am GMT+7
E-commerce boom a major driver of Vietnam's packaging paper industry growth
Vietnam's paper packaging industry is entering a period of strong growth, with an average annual growth rate forecasted at 10% until 2030.
Companies - Mon, September 15, 2025 | 10:20 pm GMT+7
Vietnam needs support from UK in developing international financial center: Deputy PM
Permanent Deputy Prime Minister Nguyen Hoa Binh has called on the UK and the City of London to continue supporting and accompanying Vietnam in promoting and introducing its international financial center (IFC).
Finance - Mon, September 15, 2025 | 10:12 pm GMT+7
Vietnam enforces 8% capital adequacy ratio for banks from Sept 15
Commercial banks and foreign bank branches in Vietnam must maintain a minimum capital adequacy ratio (CAR) of 8%, including at least 4.5% in Tier 1 core capital and 6% in Tier 1 capital, starting from September 15.
Banking - Mon, September 15, 2025 | 10:04 pm GMT+7
Tool for wood traceability management debuts in Vietnam
The Vn-WoodID application has been officially launched in Vietnam, becoming a key tool contributing to wood traceability.
Companies - Mon, September 15, 2025 | 10:00 pm GMT+7
Sun Group, US Embassy foster aviation-hospitality cooperation
Sun Group, in collaboration with the US Embassy in Vietnam, hosted the US – Vietnam Aviation Partnership Roundtable on September 12, bringing together 15 leading American corporations in aviation, technology, and financial services, opening up opportunities to position Phu Quoc as a new aviation and tourism hub in the region.
Companies - Mon, September 15, 2025 | 9:54 pm GMT+7
Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1
Vietnam remained the largest overseas market for Thailand’s Siam Cement Group (SCG) in the first half of 2025, contributing 9% of consolidated sales.
Companies - Mon, September 15, 2025 | 8:10 pm GMT+7
Central Vietnam to have new airport Mang Den
Procedures to adjust Vietnam's airport system planning, including the addition of Mang Den Airport in central Vietnam, are being proceeded, according to the Ministry of Construction.
Infrastructure - Mon, September 15, 2025 | 5:16 pm GMT+7
Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital
The Vietnamese Government has advanced the regulation of digital assets, with a resolution launching a five-year pilot framework for issuance and trading. This framework signals the Government’s intent to position the country as a regulated hub for digital assets in Asia, which could attract new capital inflows, write Dragon Capital analysts.
Economy - Mon, September 15, 2025 | 2:20 pm GMT+7
Agribank introduces sizable $4.17 bln preferential credit package
Right from the beginning of 2025, Agribank launched a substantial preferential credit package worth VND110 trillion ($4.17 billion) to support individual customers.
Companies - Mon, September 15, 2025 | 1:32 pm GMT+7
'Precious space' in Vietnam's monetary policy
The Federal Reserve's continued cuts in 2025, with the most recent in September, are considered a valuable policy "space" for the State Bank of Vietnam (SBV) to maintain low interest rates to support growth without having to worry too much about exchange rates.
Economy - Mon, September 15, 2025 | 10:15 am GMT+7
- Consulting
-
Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital
-
The ASEAN trade puzzle: Smart moves in a shifting landscape
-
Vietnam’s breakthrough opportunity against world-wide US tariff wave
-
Trump trade mayhem to steepen yield curve and weaken US dollar
-
Navigating tariff shocks: Vietnam’s path forward through diversification
-
Southeast Asia IPO performance in Jan-June