Foreign players may pour $8 bln into Vietnam shares on market status upgrade: VinaCapital
Foreign investors will likely put between $5 billion and $8 billion into Vietnamese securities if the local stock market is elevated to an emerging one from its current frontier status, a VinaCapital executive has said.
The figures correspond to 0.7-1.2% of the emerging market indexes managed by MSCI and FTSE Russell, said Dang Hong Quang, director of the Hanoi representative office of VinaCapital, one of the leading fund managers in Vietnam, at a conference held by The Investor in Hanoi on Tuesday.

Dang Hong Quang, director of the Hanoi representative office of VinaCapital. Photo by The Investor/Trong Hieu.
An upgrade would also help deepen the stock market by attracting highly stable foreign inflows as retail investors now account for more than 90% of traders, Quang added.
The executive noted that the upgrade would also help lure pension funds that are shifting away from Chinese markets due to heightened U.S.-China tensions and large institutional investors that are seeking potential alternative destinations.
Quang noted that Vietnam has outsized other peers that are included in emerging market indexes in terms of market capitalization and liquidity. Companies listed on the Ho Chi Minh Stock Exchange (HoSE) had a combined market cap of $190 billion as of end-September, larger than the Philippines, Qatar and Kuwait and approaching Malaysia. In addition, daily transaction values are only behind Indonesia in the ASEAN bloc.
“In terms of GDP and stock market size, Vietnam totally deserves to be classified among emerging markets,” Quang stressed.
Steve Brown, head of institutional sales at VPS Securities, forecast transaction volumes to double or jump five-fold if Vietnam’s stock market is upgraded to an MSCI Emerging Market. Foreign inflows would rise an estimated $1-5 billion a year.
Hurdles to upgrade
The VinaCapital executive pointed out two main criteria that the Vietnamese stock market needs to meet to be upgraded – foreign ownership limit (FOL) and prefunding.
As per the FOL, under current legislation, foreign investors are not allowed to invest in 25 business lines and have limited access to 59 others. VinaCapital suggested cutting short that list.
In addition, the introduction of Non-Voting Depositary Receipt (NVDR) would help overseas players invest in companies that have reached their FOL ceilings.
Regarding the prefunding issue, the KRX system, a trading platform provided by the Korea Exchange for the HoSE, is scheduled to go live in December this year. Once the KRX system becomes operational, securities companies will work with other parties to solve the issue of having foreign investors deposit 100% of the money to purchase shares.
In the longer term, the Central Counterparty Clearing House (CCP) will technically clear the prefunding requirement, Quang said.

Can Van Luc, chief economist at state-controlled BIDV bank. Photo by The Investor/Trong Hieu.
Speaking at the event, Can Van Luc, chief economist at state-controlled BIDV bank, cited a survey as saying that just 2% of investors worldwide do not fulfil their payment obligations in stock trading.
To solve the prefunding problem, Luc put forward three measures. They are upgrading the information technology system; implementing fines for violating investors; and authorizing securities companies to measure the risks themselves and decide whether to request their clients to deposit in advance.
Policy actions
Phan Duc Hieu, a permanent member of the National Assembly’s Economic Committee, urged the Ministry of Finance and the State Securities Commission (SSC), the stock market watchdog, to form an action plan to facilitate the status upgrade soon.

Phan Duc Hieu, a permanent member of the National Assembly’s Economic Committee. Photo by The Investor/Trong Hieu.
He proposed three levels of policy actions. First, the Vietnamese government needs to make legal adjustments regarding the clearing mechanism and the portfolio that is subject to FOL.
Second, the government should make full use of the current legal corridor while awaiting amendments. For example, authorities need to regularly update information on the FOL-restricted portfolio and make it more accessible. In addition, listed companies should be required to announce the FOL themselves instead of it being optional.
Third, as a bottom-to-top approach, listed companies should be more active in disclosing information that can impact investors beyond what they are required to do. In this regard, the SSC should take the initiative.
- Read More
Halal market presents major opportunities for Vietnamese businesses
The global Halal market is projected to reach $5 trillion by 2030, with Malaysia alone expected to hit $113.2 billion, said Shariza binti Abdul Rasheed, Halal product manager at Maybank Malaysia.
Economy - Thu, August 7, 2025 | 9:18 pm GMT+7
Steel major Hoa Phat to pour extra $130 mln into central Vietnam plant
Vietnam’s leading steelmaker, Hoa Phat Group (HoSE: HPG), will increase investment in its Dung Quat 2 iron and steel production complex by VND3.4 trillion ($129.7 million) as part of an expansion plan.
Industries - Thu, August 7, 2025 | 8:03 pm GMT+7
Vietnam’s army-backed construction firm proposes 14 offshore wind power projects
Lung Lo Construction Corporation (LLC), under the Ministry of National Defense, has submitted investment proposals for 14 offshore wind power projects with a combined capacity of 9,000 MW.
Energy - Thu, August 7, 2025 | 5:07 pm GMT+7
Vietnam's agri major Hoang Anh Gia Lai fined for bond information disclosure failure
Vietnam's agri major Hoang Anh Gia Lai JSC has been fined VND92.5 million ($3,528) for failing to disclose bond-related information as required by law.
Companies - Thu, August 7, 2025 | 4:31 pm GMT+7
Northern Vietnam province accelerates $2.2 bln LNG-to-power project
Quang Ninh province will hand over 4.9 hectares of reclaimed land to the Quang Ninh LNG-fuelled power plant project before August 11, local authorities stated at a meeting on Wednesday.
Energy - Thu, August 7, 2025 | 4:17 pm GMT+7
Vietnam's seafood firms ride profit wave ahead of US tariff hike
Vietnam’s seafood companies reported surging profits in Q2/2025, driven by importers ramping up purchases ahead of new U.S. reciprocal tariffs.
Economy - Thu, August 7, 2025 | 2:21 pm GMT+7
Le Anh Tuan appointed new CEO of Dragon Capital Vietfund Management JSC
Dragon Capital Group, Vietnam's largest asset manager, has appointed Le Anh Tuan as CEO of its arm Dragon Capital Vietfund Management Joint Stock Company (DCVFM), starting from October 1, 2025.
Companies - Thu, August 7, 2025 | 2:01 pm GMT+7
Indonesia, Malaysia, Thailand expand local currency transaction network
Bank Indonesia, Bank Negara Malaysia, and Bank of Thailand have added new Appointed Cross Currency Dealer (ACCD) participating banks to broaden services for bilateral transactions in local currencies across the three nations, Bank Indonesia said in a statement on Tuesday.
Southeast Asia - Thu, August 7, 2025 | 12:48 pm GMT+7
ASEAN to sign MoU on regional power grid implementation
ASEAN member states are set to sign an MoU on the implementation of the ASEAN Power Grid during the bloc’s Energy Ministers’ Meeting this October.
Southeast Asia - Thu, August 7, 2025 | 12:43 pm GMT+7
Vietnam overtakes Thailand to become world's second-largest rice exporter
Vietnam has outranked Thailand as the world’s second-largest rice exporter in the first half of 2025, Thai PBS reported on August 3, citing the Thai Rice Exporters Association.
Companies - Thu, August 7, 2025 | 12:41 pm GMT+7
Vietnam posts trade surplus of $10.18 bln in 7 months
Vietnam’s export earnings grew by 14.8% to $262.44 billion in the first seven months of this year, while its import turnover rose by 17.9% to $252.26 billion, resulting in a trade surplus of $10.18 billion.
Economy - Thu, August 7, 2025 | 12:19 pm GMT+7
Malaysia pledges big purchases, investments with US
Malaysia has agreed to buy and invest over $240 billion (MYR1.02 trillion) in the U.S. to help reduce the trade gap between the two countries.
Southeast Asia - Thu, August 7, 2025 | 12:08 pm GMT+7
Vietnam's leading property developer Novaland to issue 152 mln shares to settle $229 mln debt
Novaland, a major real estate developer in Vietnam, plans to issue nearly 152 million new shares to swap more than VND6 trillion ($228.8 million) worth of bond principal.
Companies - Thu, August 7, 2025 | 10:11 am GMT+7
Vietnam's FDI capital disbursement hits five-year record high despite US tariff turmoil
Disbursed foreign direct investment (FDI) capital in Vietnam reached $13.6 billion in Jan-July, up 8.4% year-on-year, despite U.S. tariff concerns.
Economy - Thu, August 7, 2025 | 9:57 am GMT+7
Malaysia steps up efforts to explore nuclear energy potential
Malaysia’s Minister of Science, Technology and Innovation Chang Lih Kang on Wednesday reaffirmed his ministry’s commitment to enhancing cooperation with the Ministry of Energy Transition and Water Transformation (PETRA) in exploring the potential of nuclear energy.
Southeast Asia - Thu, August 7, 2025 | 8:10 am GMT+7
Indonesia's economy grows faster than expected
Indonesia's economy expanded by 5.12% year-on-year in Q2/2025, up from 4.87% in the previous quarter, exceeding the forecasts of many economic organizations, which had previously projected a rate of less than 5%, according to Statistics Indonesia (BPS).
Southeast Asia - Thu, August 7, 2025 | 8:07 am GMT+7
- Consulting
-
Navigating tariff shocks: Vietnam’s path forward through diversification
-
Southeast Asia IPO performance in Jan-June
-
Vietnam's fund management industry has chance to make breakthrough development: exec
-
Vietnam infrastructure spending surges 40%
-
Vietnam needs two-pronged policy approach to mitigate impact of rising oil prices: RMIT experts
-
Proactively managing risk in volatile times