Foreign investors will turn to net buying in anticipation of stock market status upgrade: broker

By Khanh An, Lan Do
Wed, January 10, 2024 | 10:23 am GMT+7

Foreign investors, after a period of consecutive net selling, may return to net buying on the Vietnamese stock market from end-Q1/2024 in anticipation of a stock market status upgrade from a frontier to emerging market, said Le Duc Khanh, director of analysis at VPS Securities JSC.

In the first trading week of 2024, the stock market showed positive signs with the VN-Index rising by up to 30 points after just four sessions on improved liquidity. Contrary to excitement among domestic investors, foreign investors, after two net buying sessions at the end of 2023, returned to net selling in the first week of the year with a value of more than VND1,000 billion (41 million) on the Ho Chi Minh Stock Exchange (HoSE).

"The net selling pressure of foreign investors is not a worrying issue and cash flow disbursement will increase on the stock market this year," Khanh told The Investor.

 Le Duc Khanh, director of analysis at VPS Securities JSC. Photo by Theinvestor/Trong Hieu.

Le Duc Khanh, director of analysis at VPS Securities JSC. Photo by Theinvestor/Trong Hieu.

According to Khanh, despite geopolitical instability, generally, current forecasts highly appreciate the recovery of the world and region’s economy and the return of slight growth in the Vietnamese economy.

Foreign investors, after a period of consecutive net selling with a total value of nearly VND19,000 billion ($779.8 million) in 2023, may return to net buying in the stock market from the end of the first quarter in 2024 in anticipation of a market status upgrade from frontier to emerging.

"The stock investment channel can strongly attract cash flow, and the VN-Index can increase beyond the 1,250-1,350 point territory in 2024," Khanh said.

According to him, groups such as finance, chemicals, steel, oil and gas, technology, and retail, which had positive 2023 business results, are forecast to have good growth in 2024.

Khanh added that Vietnam's economic growth expectations in 2024 may partly be due to the facilitation of state-funded infrastructure plans and important projects.

Liquidity and capital flow bottlenecks in the financial market and real estate market are gradually being removed and making important progress. Therefore, the investment environment is becoming more positive, not only for domestic investors but also foreign investors, he noted.

Comments (0)
  • Read More
Build your own sales channels if e-commerce competition too harsh: NextTech exec 

Build your own sales channels if e-commerce competition too harsh: NextTech exec 

If e-commerce competition is too harsh, Vietnamese businesses should develop their own sales channels and customer databases, says Nguyen Hoa Binh, founder and chairman of NextTech Group, a leading technology startup in Vietnam.

Economy - Thu, January 16, 2025 | 9:05 am GMT+7

Indonesia moves to secure domestic pharmaceutical independence

Indonesia moves to secure domestic pharmaceutical independence

Indonesia's Health Ministry is working to achieve domestic pharmaceutical independence through research and development, production, and market guarantees.

Southeast Asia - Thu, January 16, 2025 | 8:09 am GMT+7

Malaysia cooperates with UAE in AI development, digital transformation

Malaysia cooperates with UAE in AI development, digital transformation

Malaysian Prime Minister Anwar Ibrahim has said that the country must embark on digital transformation within its economic and financial sectors, prioritizing areas such as blockchain and cryptocurrency to remain at the forefront of the digital age.

Southeast Asia - Wed, January 15, 2025 | 11:00 pm GMT+7

Thai billionaire seeks to increase stake in Vietnam dairy gaint Vinamilk

Thai billionaire seeks to increase stake in Vietnam dairy gaint Vinamilk

F&N Dairy Investments Pte. Ltd - an entity associated with Thai billionaire Charoen Sirivadhanabhakdi - has registered to purchase nearly 20.9 million shares of Vietnamese dairy giant Vinamilk (HoSE: VNM).

Companies - Wed, January 15, 2025 | 10:54 pm GMT+7

Vietnam PM leaves for official visits to Poland, Czech, WEF meeting

Vietnam PM leaves for official visits to Poland, Czech, WEF meeting

Prime Minister Pham Minh Chinh departed Hanoi on Wednesday afternoon for official visits to Poland and the Czech Republic, attendance at the 55th World Economic Forum (WEF) Annual Meeting in Davos, and bilateral meetings in Switzerland.

Politics - Wed, January 15, 2025 | 10:31 pm GMT+7

Malaysia’s manufacturing sector sees positive signs in 2025

Malaysia’s manufacturing sector sees positive signs in 2025

Malaysia’s manufacturing sector is forecast to recover well in 2025 as global trade dynamics and geopolitical shifts influence market trends.

Southeast Asia - Wed, January 15, 2025 | 10:06 pm GMT+7

Thailand posts record investment last year

Thailand posts record investment last year

Thailand saw record investment figures for 2024, with applications exceeding THB1.13 trillion ($32.5 billion), the highest in the past decade, according to the country’s Board of Investment (BOI).

Southeast Asia - Wed, January 15, 2025 | 10:05 pm GMT+7

Indonesia considers reducing trade tariffs with US

Indonesia considers reducing trade tariffs with US

Indonesia is planning to lower trade tariffs with the U.S. as President-elect Donald Trump prepares to implement a universal tariff policy.

Southeast Asia - Wed, January 15, 2025 | 9:58 pm GMT+7

Malaysia eyes greater sustainability in palm oil sector as EU law looms

Malaysia eyes greater sustainability in palm oil sector as EU law looms

The Malaysian government said on Tuesday that it will encourage sustainability while maintaining the competitiveness of its palm oil industry ahead of the implementation of the EU’s anti-deforestation law at the end of this year.

Southeast Asia - Wed, January 15, 2025 | 9:52 pm GMT+7

T&T Group proposes 3,400 hectare urban, logistics, aviation industry complex in central Vietnam

T&T Group proposes 3,400 hectare urban, logistics, aviation industry complex in central Vietnam

Vietnamese conglomerate T&T Group and Singaporean consultancy firm CPG Corporation have proposed an urban-commerce-service-logistics-aviation industry complex covering 3,400 hectares in the central province of Quang Tri.

Real Estate - Wed, January 15, 2025 | 5:17 pm GMT+7

Samsung Vietnam facilities in Thai Nguyen province post 5% revenue growth in 2024: outgoing CEO

Samsung Vietnam facilities in Thai Nguyen province post 5% revenue growth in 2024: outgoing CEO

Factories in Thai Nguyen province of Samsung Vietnam earned a total revenue of $26.3 billion in 2024, up 5% year-on-year, said outgoing Samsung Vietnam CEO Choi Joo Ho.

Companies - Wed, January 15, 2025 | 4:22 pm GMT+7

Draft decree on offshore wind power sets requirements for foreign investors

Draft decree on offshore wind power sets requirements for foreign investors

A draft decree on offshore wind power being compiled by Vietnam’s Ministry of Industry and Trade includes requirements for foreign investors, such as financial capacity and past experience.

Energy - Wed, January 15, 2025 | 4:01 pm GMT+7

Kim Long Motors, China’s Changan Automobile to build 50,000-unit plant in central Vietnam

Kim Long Motors, China’s Changan Automobile to build 50,000-unit plant in central Vietnam

Vietnamese automaker Kim Long Motors and China’s Changan Automobile Co., Ltd. will join hands to build a plant manufacturing 5-7 seat passenger cars in the central city of Hue.

Industries - Wed, January 15, 2025 | 1:43 pm GMT+7

From a third-grade dropout to famous ceramics maker exporting worldwide

From a third-grade dropout to famous ceramics maker exporting worldwide

Ly Ngoc Minh, chairman and founder of Minh Long Ceramics Company, defied the odds by transforming from a boy who only completed the third grade into the creator of a globally recognized ceramic brand and the owner of a ceramic product museum.

Companies - Wed, January 15, 2025 | 12:30 pm GMT+7

Nestlé-invested bottled water maker La Vie LLC must pay tax arrears, payment delay fees of $2.6 mln in Vietnam

Nestlé-invested bottled water maker La Vie LLC must pay tax arrears, payment delay fees of $2.6 mln in Vietnam

La Vie LLC, a joint venture between Nestlé Water and a Long An province-based Vietnamese company, must pay tax arrears and payment delay fees of VND66.7 billion ($2.6 million), according to tax authorities.

Companies - Wed, January 15, 2025 | 11:51 am GMT+7

Russia willing to help build Vietnam’s nuclear power industry: Prime Minister

Russia willing to help build Vietnam’s nuclear power industry: Prime Minister

Russia is willing to help build Vietnam’s nuclear power industry with its extensive experience in the field, says Russian Prime Minister Mikhail Mishustin.

Politics - Wed, January 15, 2025 | 9:38 am GMT+7