Foreign capital outflows continue, but Korean and Taiwanese investments boost Vietnamese stocks
Taiwanese and Korean capital flowing through ETFs into Việt Nam experienced a positive surge, according to data from FiinTrade.
Foreign investors continued to sell stocks in April, but the value of net sales decreased by half. Notably, Taiwanese and Korean capital flowing through ETFs into Việt Nam experienced a positive surge, according to data from FiinTrade.
The total value of net sales by foreign investors on the HOSE, HNX and UPCOM exchanges exceeded VNĐ5.3 trillion in April. While this marks the third consecutive month of negative net cash flow, the scale of net sales decreased by 52.8 per cent compared to March 2024. Around 81 per cent of the net selling value by foreign investors in April 2024 was executed through order matching.
Throughout the first four months of 2024, foreign investors have sold a net total of VNĐ16.8 trillion, equivalent to nearly 74 per cent of the net selling value in 2023 (over VNĐ22.8 trillion).
In April 2024, foreign ETF fund groups experienced a net withdrawal of over VNĐ365 billion. This marks the fourth consecutive month of net withdrawals for this fund group, with the total accumulated value surpassing VNĐ3.3 trillion since the start of 2024, compared to a net input of VNĐ4.1 trillion in 2023.
The net withdrawal activity was primarily driven by the Xtrackers FTSE Vietnam ETF (VNĐ408 billion VND) and the iShares MSCI Frontier and Select ETF (VNĐ201 billion).
However, there were some positive signals observed in certain foreign funds, such as Fubon FTSE Vietnam ETF (VNĐ55.7 billion), KIM Growth (VNĐ176 billion) and KIM Kindex (VNĐ149 billion).
In April, domestic ETF funds saw a significant net withdrawal of VNĐ2.4 trillion, although this was lower than the net withdrawal in March 2024. It is worth noting that this fund group has faced net withdrawal pressure for the ninth consecutive month.
In the first four months of 2024, the total net withdrawal value of domestic ETF funds reached VNĐ7.9 trillion, equivalent to 1.37 times the net withdrawal value in 2023.
The majority of the net withdrawal value was attributed to two funds managed by DC, namely the VFMVN Diamond ETF (VNĐ1.8 trillion) and the VFM VN30 ETF (VNĐ181 billion). Additionally, the SSIAM VNFIN LEAD ETF recorded a net withdrawal of over VNĐ559 billion.
In April 2024, capital inflows into ETF funds mainly originated from Korea (KIM GROWTH VN30, KIM ACE Vietnam VN30) and Taiwan (Fubon FTSE Vietnam ETF). These funds primarily held stocks in the steel sector (HPG), information technology sector (FPT), and food and beverages sector (VNM, MSN). — VNS
