Which Stocks Will Face Net Buying by Foreign Funds?

According to a Q&A document on Vietnam's market upgrade published by FTSE Russell in April 2026, the Vietnamese equity market will officially be upgraded to Secondary Emerging Market status during the September 2026 review.

USD 128.2m Inflows Anticipated

Based on FTSE criteria and data cut-offs as of 30 June 2026, ACBS estimated that 19 Vietnamese stocks would satisfy the selection criteria for the FTSE GEIS. This cohort comprises four large-cap, one mid-cap, and 14 small-cap counters.

Following the market upgrade, domestic equities will be integrated into four major indexes—namely the FTSE Global All Cap, FTSE All-World, FTSE Emerging All Cap, and FTSE Emerging—alongside other relevant benchmarks.

Among the index-tracking funds tracking the FTSE benchmarks outlined in Table 1, the largest asset pool is currently held by the Vanguard Total International Stock Index Fund. Managing total assets of USD 652.3bn, the fund mirrors the FTSE Global All Cap ex US Index. This is followed by the Vanguard FTSE Emerging Markets ETF, which commands USD 162.8bn in total assets and tracks the FTSE Emerging Markets All Cap Index.

In line with the aforementioned FTSE GEIS criteria and data as of 30 June 2026, 19 stocks are projected to qualify for the FTSE Global All Cap Index.

During the September 2026 capital deployment phase, the individual stocks anticipated to attract the heaviest net buying are VIC (VND 1,580bn USD 60m) and VHM (VND 498bn USD 19m). The total net buying value is estimated at roughly USD 128.2m (equivalent to VND 3,370.1bn).

Given these projected net inflows alongside average daily turnover recorded in June, most rebalancing transactions are expected to be absorbed within a single trading session. The notable exception is VPL, whose estimated net buying value represents nearly double its current average daily trading volume. Consequently, ACBS assesses that, while this rebalancing period will deliver a psychological boost by drawing foreign capital, its intraday market impact will remain largely contained.

Overseas Funds Set Up Accounts in Advance

At the Ministry of Finance's review meeting on the afternoon of 17 July—covering H1 performance and the H2 outlook for 2026—leaders from the State Securities Commission (SSC) provided updates on capital flows and upgrade prospects. They noted that despite substantial foreign capital outflows during the first half of the year, several of the world’s largest asset managers have, for the first time, proactively opened trading accounts in the Vietnamese stock market.

Mr Bui Hoang Hai, Vice Chairman of the SSC, stated that this move reflects a growing appetite among international financial institutions for the Vietnamese capital market. This is particularly pronounced now that FTSE Russell has firmed up the timeline for upgrading Vietnam to Secondary Emerging Market status. This milestone is widely expected to "unlock" robust foreign capital inflows into Vietnamese equities, potentially reversing the recent net-selling trend.

Currently, investment funds operating in Vietnam manage total assets exceeding VND 834,000bn, with net asset value (NAV) topping VND 93,000bn. The first half of this year also witnessed the launch of several new investment funds, expanding the footprint of the domestic asset management sector.

Market regulators emphasized that their strategic focus will center on refining the legal framework, improving corporate governance standards, streamlining administrative processes, and accelerating digital transformation to bolster the market's appeal to long-term international capital.

In the second half of the year, the SSC plans to finalize amendments to the Law on Securities for submission to the National Assembly this coming October. Concurrently, the regulator will press ahead with the Central Counterparty (CCP) mechanism, dismantle existing barriers for foreign investors, and elevate information disclosure standards.

Alongside maintaining its standing within the FTSE Russell framework, the regulatory body continues to engage with MSCI and S&P, targeting an upgrade to emerging market status across all major index providers before 2030.

Furthermore, a suite of new structural reforms is under review. These include extending trading hours, widening price bands, promoting IPOs coupled with immediate listings, and establishing dedicated boards for innovative startups as well as digital assets in the future.