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Global Funds Flee Vietnam Stocks at Record Pace on FX Jitters

Published: Wednesday, September 3, 2025 · 6:53 AM  |  Updated: Wednesday, September 3, 2025 · 6:53 AM

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The Hanoi Stock Exchange in Hanoi.
The Hanoi Stock Exchange in Hanoi.

Foreign investors pulled an unprecedented amount of money from Vietnam’s stock market following a recent rally as mounting currency pressures dimmed its appeal.

Global funds sold a net $1.5 billion worth of local shares in August — the biggest monthly outflow since Bloomberg-compiled data going back to 2009. The withdrawals, which concentrated around a key stock, came as the Vietnamese dong hit a record low, with some analysts forecasting further weakness ahead.

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“Concerns over an unfavorable exchange-rate outlook,” are helping drive the flows, said Tyler Manh Dung Nguyen, chief market strategist at Ho Chi Minh City Securities. There’s also profit-taking after the steep rally, he said.


Vietnam’s benchmark VN Index has surged more than 32% this year, outpacing Southeast Asian peers on optimism over economic growth and a potential market upgrade. The rally has driven valuations higher, while the local currency weakened, prompting foreigners to head for the exit.

Part of the outflows appear to center around conglomerate Vingroup, which contributed to around 13 trillion dong ($493 million) of total net outflows last month, said Bloomberg Intelligence analyst Sufianti. “Most emerging markets also saw outflows, it doesn’t seem to be a country specific thing,” she added.

The dong has fallen about 3.4% against the dollar so far this year — the worst performer in Southeast Asia — with analysts expecting the local currency to weaken further. MUFG Bank is forecasting the currency to fall to 26,500 per dollar by year-end due to rising import demand and a narrowing current-account surplus.

The local currency traded 0.1% lower against the greenback on Wednesday. Vietnam’s stock gauge fell as much as 0.7% after traders returned from a two-day holiday.

Still, the market is supported by resilient domestic flows, according to Nguyen Anh Duc, head of institutional brokerage at SBB Securities. Improving corporate earnings should also provide solid fundamental support.

(Updates throughout.)

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