HO CHI MINH CITY, Nov 5 (Vietnam Insider) — Foreign investors turned heavy net sellers on Vietnam’s stock market in October, offloading nearly VND 22.2 trillion (USD 870 million) worth of shares — their sharpest monthly outflow of 2025 — even as the market’s total capitalization continued to rise modestly.
According to the Ho Chi Minh Stock Exchange (HoSE), the benchmark VN-Index closed October at 1,639.65 points, slipping slightly from the previous month amid volatile trading and sustained foreign sell pressure.
Trading Volume Eases, Tech and Consumer Stocks Lead Gains
Market activity moderated, with average daily trading volume dropping to 1 billion shares per session, valued at around VND 33.5 trillion (USD 1.3 billion) — down 8.5% in volume and 1.4% in value compared to September.
Despite the weaker turnover, six out of HoSE’s industry indices posted gains. The strongest performers were Information Technology (+10.9%), Consumer Discretionary (+7.2%), and Industrials (+3.5%), reflecting investors’ rotation into growth-oriented and export-driven sectors.
Massive Foreign Outflows Signal Risk-Off Sentiment
Total foreign trading value in October reached VND 189.2 trillion (USD 7.4 billion), accounting for 12.3% of total market activity. However, the net result was overwhelmingly negative, with foreign investors selling more than they bought by VND 22.2 trillion, underscoring persistent risk aversion toward emerging markets amid global rate uncertainty and shifting capital flows.
Analysts noted that the continued sell-off follows a broader regional trend, with overseas funds rotating toward safer assets after months of volatility in Asian equities. The heavy divestment also coincides with profit-taking after a strong third-quarter rally in Vietnam’s blue-chip stocks.
Market Structure and Capitalization Remain Strong
As of October 31, HoSE listed 669 securities, including 394 stocks, 4 closed-end funds, 18 ETFs, and 253 covered warrants, representing nearly 195.24 billion units of listed securities.
The total market capitalization of HoSE reached VND 7.25 quadrillion (USD 285 billion) — up 0.7% month-on-month — equivalent to 63% of Vietnam’s 2024 GDP and accounting for 94% of the nation’s total listed equity value.
HoSE currently hosts 50 companies valued above USD 1 billion, including three corporate giants with market caps exceeding USD 10 billion Vingroup (VIC) — Vietnam’s largest private conglomerate, Vietcombank (VCB) — the nation’s biggest lender by market value, and Vinhomes (VHM) — the country’s top property developer.
Outlook: Cautious Optimism Despite Foreign Retreat
Market strategists expect the VN-Index to remain range-bound in November as domestic funds continue to absorb foreign outflows. Local investors, buoyed by stable macroeconomic indicators and easing inflation, may provide near-term support — though sentiment could remain fragile ahead of anticipated Federal Reserve rate decisions and foreign exchange pressures.
“Foreign selling has been heavy but not panic-driven,” one Ho Chi Minh City–based analyst said. “Vietnam’s fundamentals remain attractive, and once global liquidity improves, we may see capital flowing back.”
For now, the contrast is clear: while foreign money exits, domestic resilience continues to underpin one of Asia’s most dynamic emerging markets.
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Source: Vietnam Insider