Foreign Investors Make Significant Moves Ahead of Vietnam's Market Upgrade

Vietnam's stock market experienced notable activity from foreign investors in the week of September 14-18, 2026, as they bought a net total of over VND 2,613 billion (approximately $110 million). This surge in foreign investment occurred just before the market's anticipated upgrade to secondary emerging market status by FTSE Russell.

During this week, the VN-Index fluctuated considerably, initially facing downward pressure that brought it close to 1,790 points. However, strong demand in the banking and securities sectors helped the index recover, closing at 1,815.66 points, a gain of 20.45 points (+1.14%) from the previous week, according to Cafef.

Foreign investors were particularly active on the Ho Chi Minh Stock Exchange (HoSE), where they purchased a net of VND 2,659 billion ($112 million). In contrast, they sold off VND 98 billion ($4.2 million) on the Hanoi Stock Exchange (HNX) and made a minor net purchase of VND 52 billion ($2.2 million) on the UPCoM exchange. The week saw FPT Corporation leading in net purchases with VND 508 billion ($21.5 million), followed by HDBank and BSR, which attracted VND 462 billion ($19.5 million) and VND 423 billion ($18 million), respectively.

Despite the overall positive sentiment, the market faced a sudden downturn in the final 15 minutes of trading on September 18, when the VN-Index unexpectedly lost over 13 points, closing at 1,813 points. This decline was primarily attributed to increased selling pressure from major stocks, particularly within the banking sector. Notably, six major banking stocks, including VietinBank (CTG) and Techcombank (TCB), contributed significantly to this drop, with CTG falling by 3.7% and TCB by 3.2%, according to Tuoi Tre.

“The upgrade is seen as a recognition of Vietnam's efforts to improve its market infrastructure and accessibility for international investors.”Bob McCooey, Vice President of S&P DJI

In a significant development, Vanguard, the world's second-largest asset manager, announced plans to invest approximately $2.5 billion in Vietnam's stock market within a year following the upgrade. This figure surpasses previous estimates by Vietnamese analytical firms, which had projected between $1 billion and $2 billion. Duncan Burns, head of Investments and Global Equity for Asia-Pacific at Vanguard, emphasized that this investment would enhance visibility and attract global capital to Vietnam, stating, “Many investors may have never visited Vietnam, but through us, they can participate in the sustainable growth of this market,” as reported by VnExpress International.

While Indonesian coverage of the market upgrade emphasized the immediate benefits of increased foreign investment and the positive market sentiment, Vietnamese outlets framed the upgrade as a crucial step towards long-term market development and sustainability. The State Securities Commission of Vietnam noted that the upgrade opens opportunities for enhanced international investment flows, particularly from active and passive funds tracking emerging market indices. Bui Hoang Hai, Deputy Chairman of the Commission, highlighted the growing interest from major financial institutions, indicating a robust international presence at the recent conference regarding the upgrade.

According to Vietnamese media, the upgrade is expected to attract approximately $1.5 to $2 billion in passive capital from foreign ETF funds within the next 12 months, with some analysts suggesting potential for even higher inflows depending on market conditions. This contrasts with the more immediate focus on investment figures presented in Indonesian reports, which highlighted the short-term influx of capital without delving into the structural implications.

Despite the late-session decline, the overall market breadth remained positive, with 185 stocks gaining on HoSE compared to 130 that fell. Trading volume surged, with total transactions on HoSE exceeding VND 22 trillion ($935 million), marking a 45% increase from the previous session and the highest level in nearly four months.

As Vietnam prepares for its transition to secondary emerging market status, analysts expect that this upgrade will attract more foreign capital and enhance the market's appeal. Bob McCooey noted Vietnam's progress in enhancing its operational mechanisms and improving investor access, which is crucial for future growth. Minister of Finance Ngo Van Tuan reiterated that the upgrade is not an endpoint but a new milestone, requiring continuous improvements in market governance and transparency to maintain investor confidence.

Overall, the recent activities in the stock market underscore the growing confidence of foreign investors in Vietnam's economic potential, particularly as the country continues to modernize its financial systems.