Foreign investors to be net Vietnam stock buyers in 2024: experts

By Kha Moc, Minh Hue
Mon, January 22, 2024 | 11:41 am GMT+7

Foreign investors will return to net buying in the Vietnamese stock market this year to catch opportunities from the market status upgrade from “frontier” to “emerging”, said experts.

Their capital flows may target stocks with large capitalization that still have "ownership room" for foreign investors and meet the needs of liquidity-related criteria, they added.

Foreign investors turned net buyers to the tune of more than VND586 billion ($23.9 million) on the Ho Chi Minh Stock Exchange during the January 15-19, 2024 week. Photo courtesy of Thanh Nien (Young People) newspaper.

Foreign investors turned net buyers to the tune of more than VND586 billion ($23.9 million) on the Ho Chi Minh Stock Exchange during the January 15-19, 2024 week. Photo courtesy of Thanh Nien (Young People) newspaper.

The VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), ended the third trading week of 2024 at 1,181.5 points, the highest level in the past four months.

Notably, foreign investors turned net buyers to the tune of more than VND586 billion ($23.9 million) on the HoSE, focusing on banking, retail, and steel stocks.

Statistics show that MWG of retailer Mobile World led the list of stocks net bought by foreign investors with total value of VND548 billion ($22.34 million). It was followed by banking stocks such as STB of Sacombank, VCB of Vietcombank, VPB of VPBank, BID of BIDV and CTG of VietinBank.

In addition, foreign cash flowed into HPG of steel giant Hoa Phat with VND206 billion ($8.4 million), VHM of real estate developer Vinhomes VND132 billion ($5.38 million), and VCG of Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex) VND101 billion ($4.12 million).

This move by foreign investors has led to high market expectations as they net sold more than VND19.5 trillion ($794.9 million) last year.

Nguyen Hoai Thu, portfolio manager/investment director at VinaCapital, said foreign investors still have faith in the sustainable development ability of the Vietnamese economy and appreciate the country’s economic-political-social stability, the increasing income and demand of 100 million people, and the possible upgrade of Vietnam's stock market status from ‘frontier’ to ‘emerging’ in the next 2-3 years.

"If Vietnam's stock market is upgraded, additional foreign capital flows could reach $5-8 billion," Thu said, citing that in countries that have had their stock market upgraded, usually capital flows, both domestic and foreign, arrived strongly within 1-2 years before the official upgrade.

Sharing the same opinion, Le Duc Khanh, analysis director at VPS Securities Company, said that from the first quarter of 2024, foreign investors will return to net buying in the Vietnamese stock market to catch opportunities from the upcoming market upgrade.

"The stock investment channel can strongly attract cash flows and the VN-Index can surpass the area of 1,250-1,350 points in 2024," Khanh forecast.

This expert added that Vietnam has a better economic growth outlook this year thanks to the acceleration of key infrastructure projects using the state budget. Liquidity and capital flow bottlenecks in the financial and real estate markets have also been gradually removed.

"Therefore, the investment environment has become more positive for not only domestic investors but also foreign ones," he affirmed.

In a positive scenario, BIDV Securities (BSC) said that foreign investors will increase net purchases by $700 million with supporting factors including the gradually narrowing interest rate difference between the U.S. dollar and Vietnam dong as the U.S Federal Reserve (Fed) has begun to reduce interest rates.

This scenario can be backed by the process of upgrading the Vietnamese market and Thai investors gradually becoming active again after new tax regulations take effect from this year, it added.

Comments (0)
  • Read More
Central Vietnam province plans to build $2.4 bln LNG power plant from 2031

Central Vietnam province plans to build $2.4 bln LNG power plant from 2031

The 4,800-MW Chan May LNG power plant, with an investment of $2.4 billion, can be deployed in 2031-2035, according to Thua Thien Hue authorities.

Energy - Thu, November 21, 2024 | 10:41 pm GMT+7

Indonesia, France step up cooperation in economy, defence

Indonesia, France step up cooperation in economy, defence

Indonesian President Prabowo Subianto discussed economic and defence cooperation during a bilateral meeting on Tuesday with French President Emmanuel Macron on the sidelines of the G20 Summit in Rio de Janeiro, Brazil, Antara reported.

Southeast Asia - Thu, November 21, 2024 | 10:25 pm GMT+7

Thai economy to maintain upward momentum in 2025

Thai economy to maintain upward momentum in 2025

The National Economic and Social Development Council of Thailand (NESDC) expects the Thai economy to sustain its upward momentum in 2025 with a growth of 2.3-3.3% despite growing risks.

Southeast Asia - Thu, November 21, 2024 | 10:24 pm GMT+7

Former parliament chairman Vuong Dinh Hue warned for violations

Former parliament chairman Vuong Dinh Hue warned for violations

The Politburo, Vietnam's supreme decision making body, on Wednesday issued warnings to Vuong Dinh Hue, former Chairman of the National Assembly, and Nguyen Van The, former Minister of Transport, for violations while on duties.

Politics - Thu, November 21, 2024 | 10:10 pm GMT+7

Sumitomo insists on building LNG power plant in central Vietnam

Sumitomo insists on building LNG power plant in central Vietnam

Japanese trading house Sumitomo has been pushing for a liquefied natural gas (LNG)-fed power plant investment in Vietnam’s central province of Khanh Hoa.

Energy - Thu, November 21, 2024 | 8:53 pm GMT+7

Vietnam’s Vinhomes fulfils 67% of record buyback plan

Vietnam’s Vinhomes fulfils 67% of record buyback plan

Vinhomes, the housing development arm of conglomerate Vingroup, has purchased back 246.98 million shares, meeting 66.75% of the plan and accounting for 5.7% of the outstanding volume.

Finance - Thu, November 21, 2024 | 8:43 pm GMT+7

Vietnam high-speed railway should run beyond Hanoi, HCMC on either side: lawmakers

Vietnam high-speed railway should run beyond Hanoi, HCMC on either side: lawmakers

Vietnam’s mega North-South high-speed railway project should be redesigned and extended beyond Hanoi and Ho Chi Minh City as currently planned, several lawmakers have suggested.

Infrastructure - Thu, November 21, 2024 | 6:11 pm GMT+7

Vietnam-Malaysia relationship upgraded to comprehensive strategic partnership

Vietnam-Malaysia relationship upgraded to comprehensive strategic partnership

Vietnam and Malaysia have upgraded their relationship to a comprehensive strategic partnership, the highest level in the former’s diplomatic hierarchy.

Politics - Thu, November 21, 2024 | 5:21 pm GMT+7

Petrovietnam units sign LNG supply deal for trial run of Vietnam’s first LNG power plants

Petrovietnam units sign LNG supply deal for trial run of Vietnam’s first LNG power plants

PV Power and PV Gas, two units of state-owned Petrovietnam, have signed an LNG supply deal for trial operation of Nhon Trach 3 and Nhon Trach 4, Vietnam’s first LNG-to-power plants.

Energy - Thu, November 21, 2024 | 4:40 pm GMT+7

Sufficient first phase funds ensured for Vietnam’s new mega airport: transport minister

Sufficient first phase funds ensured for Vietnam’s new mega airport: transport minister

Minister of Transport Nguyen Van Thang affirmed Wednesday that funding would be secured for building the Long Thanh International Airport, set to become Vietnam’s biggest.

Infrastructure - Thu, November 21, 2024 | 3:53 pm GMT+7

Bamboo Capital wins kudos for transparent reports, good governance

Bamboo Capital wins kudos for transparent reports, good governance

Vietnamese private conglomerate Bamboo Capital Group has been honored as a Top 20 business with the Best Annual Report and the Best AGM Organization at the 2024 Vietnam Listed Company Awards (VLCA).

Bamboo Capital - Thu, November 21, 2024 | 3:37 pm GMT+7

VAFIE to organize workshop on amendments to horse racing, football betting rules

VAFIE to organize workshop on amendments to horse racing, football betting rules

The Vietnam’s Association of Foreign Invested Enterprises (VAFIE) and The Investor will organize a workshop on suggestions to amend the government’s Decree 06 on horse racing, greyhound racing and international football betting services.

Economy - Thu, November 21, 2024 | 2:38 pm GMT+7

Vietnam Politburo okays international, regional financial centers in HCMC, Danang

Vietnam Politburo okays international, regional financial centers in HCMC, Danang

Vietnam’s highest decision-making body, the Politburo, has greenlighted the establishment of an international financial center in Ho Chi Minh City and a regional financial center in the central city of Danang.

Economy - Thu, November 21, 2024 | 1:50 pm GMT+7

Singapore's Platinum Victory seeks to gain veto at Vietnam’s REE

Singapore's Platinum Victory seeks to gain veto at Vietnam’s REE

Singaporean fund Platinum Victory Pte. Ltd. has registered to buy more shares of Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corporation (REE) to achieve the vetoing power in the latter.

Finance - Thu, November 21, 2024 | 11:29 am GMT+7

Posco keen on investing in Vietnam's $2.2 bln LNG power project

Posco keen on investing in Vietnam's $2.2 bln LNG power project

South Korea’s steelmaker Posco is eyeing to invest in the $2.2 billion Quynh Lap LNG-fired power plant project in Vietnam’s central province of Nghe An.

Energy - Thu, November 21, 2024 | 10:42 am GMT+7

Vietnam firm Hoa Lam to build $212 mln Aeon Mall in Mekong Delta

Vietnam firm Hoa Lam to build $212 mln Aeon Mall in Mekong Delta

The Mekong Delta city of Can Tho has accepted a subsidiary of private multi-sector Hoa Lam Group as the investor of the Aeon Mall Can Tho commerce and service center.

Industries - Thu, November 21, 2024 | 10:31 am GMT+7