(Sept 18): Global funds are dipping back into Vietnamese stocks ahead of their inclusion in FTSE Russell’s emerging markets universe next week.

Foreigners have bought US$54.2 million (RM221.03 million) of local shares on a net basis so far this week, set for the most in six weeks. Vietnam’s reclassification by FTSE takes effect on Sept 21.

Foreign selling in Vietnamese shares has slowed in recent months, helping the benchmark to erase losses for the year. The country in August secured a bigger-than-expected weighting in FTSE Russell’s semi-annual index review, paving the way for billions in foreign stock inflows. 

“Foreign re-engagement in Vietnamese equities could build gradually as FTSE inclusion is phased in and market access improves,” said Sufianti, a Singapore-based analyst at Bloomberg Intelligence.

Passive funds that track FTSE indices are expected to execute orders later Friday as they look to mirror the country’s weight in the index provider’s emerging-market gauge. Vanguard Group may invest about US$2.5 billion in the local stock market over the next few years, Duncan Burns, head of APAC investment management and global equity, said at a conference in Hanoi on Friday. 

Global funds remain substantial sellers on an annual basis, withdrawing a net US$3.5 billion of shares so far this year. That adds to the record US$4.8 billion outflow in 2025, as geopolitical tensions and a rotation toward faster-growing markets weighed on demand.

Uploaded by Chng Shear Lane