Foreign institutional investors are allowed to buy Vietnamese stocks without having enough money at the time of purchase from November 2 under Circular No.68/2024/TT-BTC recently issued by the Ministry of Finance.

Foreign investors have net sold Vietnamese stocks on HoSE with a value of 58 trillion VND (over 2.3 billion USD) since the beginning of 2023, indicating a prevailing trend of net selling in the Vietnamese stock market.

Vietnam is working hard to have its stock market upgraded from frontier status to an emerging market by 2025.

The exchange-traded funds (ETFs) investing in Vietnamese stocks recorded a net withdrawal of nearly 4.5 trillion VND (187 million USD) in August, the strongest monthly net withdrawal value in more than two years, according to data from FiinGroup.

Investors of the Republic of Korea (RoK) were net buyers of stocks in Vietnam, at 9.1 million USD, in the first 11 days of August, over four times higher than the net buying of 2.12 million USD in July, according to the Korea Securities Depository (KSD).

Investors may want to brace for a bumpy trading week as the Vietnamese stock market is still vulnerable to the unpredictability of global shocks in geographic, political and economic conditions.

The Vietnamese stock market suffered during the week from July 29 to August 2 after having rallied for four consecutive weeks amid negative news from the international markets.

Vietnamese shares ended on August 10 on a positive note, driven by financial-banking and energy sectors as confidence was boosted by news on State capital divestment from State-owned businesses.

Vietnamese stocks are expected to rise further with the benchmark VN-Index forecast to surpass its all-time peak of 1,170 in 2007 on rising investor confidence in the market outlook, analysts said.

Vietnamese shares recouped part of the week’s losses on February 9 as the current massive sell-off across the stock market triggered investors to scoop up stocks at bargain prices.

Vietnamese shares underwent another strong decline on February 6 as investor sentiment remained negative following the selloff that had spread across global markets.

Vietnamese stocks are expected to rise further on expectations of positive corporate earnings reports from the financial-banking sector and a strong inflow of foreign investment, analysts said.

Shares extended gains for a third session on both local exchanges on June 13, driven by investors’ purchasing large-cap stocks.

Shares rebounded on both local markets on July 11, driven by investors picking up stocks that had fallen to attractive price levels.

Vietnamese shares extended gains for a second session in both local markets on June 29, driven by the financial sector.

Vietnamese stocks advanced on the two local markets on May 9 as large-cap shares were boosted by investors’ bargain hunting.