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.

Related

Source: Vietnam Insider

Vietnam Insider – Vietnam’s stock market ended October on a volatile note, with foreign investors staging a heavy sell-off that hit several major banking stocks. The VN-Index slid 2.59% for the week, closing at 1,639.65 points, as global uncertainty and profit-taking weighed on blue-chip shares.

The week began with sharp losses before a brief midweek rebound to around 1,675 points, supported by selective buying in large-cap stocks. However, selling pressure soon returned, particularly among high-value sectors such as banking, real estate, and brokerage, leading to another downturn by week’s end. Meanwhile, trading activity picked up among mid- and small-cap stocks, especially those that had underperformed earlier in the year — a sign of speculative rotation in a cautious market.

Foreign Investors Turn Net Sellers, Offload Nearly $120 Million

Foreign investors were net sellers across all major exchanges, offloading a combined VND 2.997 trillion (around USD 118 million) over five trading sessions. The only exception came on October 28, when they briefly returned to net buying before resuming their selling streak.

On the Ho Chi Minh Stock Exchange (HoSE), foreign funds sold a net VND 2.659 trillion, followed by VND 358 billion on the Hanoi Exchange (HNX), partially offset by a modest VND 20 billion in net buying on UPCoM.

Bank Stocks Lead the Sell-Off

The week’s biggest target was Military Bank (MBB), which saw foreign investors dump roughly VND 1.185 trillion (USD 47 million) — the heaviest foreign outflow of any stock in the market. Analysts noted that the move likely reflected short-term portfolio rotation rather than a change in fundamentals, as MBB remains one of Vietnam’s most stable and well-capitalized lenders.

Other major sell-offs included SSI Securities (VND 937 billion), VIX (VND 470 billion), Hoa Phat Group (HPG, VND 277 billion), Vingroup (VIC, VND 212 billion), CEO Group (VND 210 billion), VietinBank (CTG, VND 203 billion), and VietCap Securities (VCI, VND 160 billion). Additional blue chips such as PDR, HDC, VND, and VHM also faced consistent net selling in the range of VND 147–158 billion each.

Tech and Retail Stocks Attract Foreign Buyers

In contrast, foreign investors showed strong appetite for FPT Corporation, pouring in VND 1.35 trillion (USD 53 million) — making it the most aggressively accumulated stock of the week. VPBank (VPB) and HDBank (HDB) also attracted net inflows of VND 286 billion and VND 225 billion, respectively, signaling continued interest in select banking names with strong digital and retail exposure.

Other notable foreign buys included Vincom Retail (VRE, VND 160 billion), Hai An Transport (HAH, VND 141 billion), Techcombank (TCB, VND 101 billion), and Sacombank (STB, VND 87 billion). Consumer and logistics plays such as LPB, VJC, KDH, FRT, and MWG also saw modest inflows ranging from VND 50–80 billion.

Outlook: Foreign Flows Turn Cautious as Global Yields Rise

Analysts view the late-October sell-off as a reflection of broader global risk aversion. Rising U.S. bond yields, geopolitical tensions, and currency volatility have prompted many offshore investors to trim exposure to emerging markets — including Vietnam.

Still, the country’s fundamentals remain solid, with stable growth, easing inflation, and an expected policy rate cut in 2026. Market watchers suggest that foreign capital may return once valuations stabilize and liquidity improves, particularly in sectors tied to technology, infrastructure, and domestic consumption.

For now, the sharp divergence between foreign selling and selective buying underscores a key theme in Vietnam’s evolving market: smart money isn’t leaving — it’s rotating.

Related

Source: Vietnam Insider

Policy Shift: Foreign Stake Raised to 49%

Vietnam has raised the foreign ownership cap in certain private banks from 30% to 49%. This change, enacted via Decree 69/2025/ND-CP effective May 19, 2025, targets banks undergoing restructuring or mandatory transfers (such as MB Bank, HDBank, and VPBank). By allowing nearly half ownership, the government aims to attract more foreign direct investment (FDI) to bolster bank capital, improve governance, and introduce advanced technology in the sector. These banks have recently taken over weaker lenders as part of a broader industry cleanup, and the policy rewards them with greater access to international funding.

Stacks of Vietnam’s ₫500,000 banknotes symbolize the capital influx now possible as foreign investors can own up to 49% of local banks. This policy change is designed to inject substantial new funds into Vietnamese banks, strengthening their balance sheets for growth.

Growth Outlook: Robust Economy and Banking Sector

The timing of this liberalization aligns with Vietnam’s strong economic outlook. The World Bank projects Vietnam’s GDP to grow about 6.8% in 2025, signaling healthy economic momentum. Credit expansion is likewise upbeat – the State Bank of Vietnam targets roughly 16% credit growth in 2025 – which should fuel bank lending revenues. Vietnam’s banks are expected to remain highly profitable, with the sector trading around 1.1× book value and an 18% return on equity projected in 2025. For investors, these metrics indicate attractive valuations and the potential for strong returns as the banking industry expands alongside the economy.

Regional Context: Closing the Gap with Peers

By lifting the cap, Vietnam is catching up to regional peers in openness. Its previous 30% foreign ownership limit was low compared to other Southeast Asian markets. (For instance, Singapore and Malaysia permit up to 100% foreign ownership in banks, and Indonesia allows around 40%.) The new 49% threshold brings Vietnam’s policy more in line with the region, making its banking sector more competitive and accessible to global investors. Crucially, the additional foreign capital will help Vietnamese banks meet Basel III capital standards and adopt international best practices. Regulators expect that partnerships with foreign stakeholders will introduce global expertise, strengthen risk management, and accelerate digital transformation in banking. In short, Vietnam is signaling that its financial sector is “open for business” and committed to modernizing in step with global norms.

Investor Benefits: Influence and Long-Term Gains

For foreign investors, this policy shift opens the door to greater influence and participation in Vietnam’s high-growth banking market. Owning up to 49% of a local bank (versus the previous one-third limit) means a larger say in strategic decisions and corporate governance. Such significant stakes enable deeper partnerships – investors can collaborate on new products, technology upgrades, and management improvements, enhancing long-term value. Recent bank restructurings (e.g. VPBank’s acquisition of GPBank and HDBank’s takeover of DongA Bank) have cleaned up bad assets and paved the way for stronger performance. Now, fresh foreign capital and expertise can build on these improvements. Investors entering Vietnam’s banking sector gain exposure to a fast-growing economy, robust credit demand, and a banking industry with rising profitability. With improved transparency and digital innovation on the horizon, the potential for strong returns and dividends is compelling. Overall, Vietnam’s higher foreign ownership cap presents an exciting opportunity to invest in a reforming, expanding market poised for sustained growth.

Related

Source: Vietnam Insider

Vietnam Maritime Commercial Joint Stock Bank (MSB) is one of the banks nearing the ceiling of 30% foreign ownership. As of March 9, the number of shares held by foreign investors at MSB is more than 599.5 million shares, equivalent to a foreign ownership rate of 29.98%.

The reason foreign investors hold a large amount of MSB shares can be explained by the bank’s positive growth rate and asset quality. Over the years, MSB’s total operating income and profit have continued to increase. In 2022, net interest income accounted for nearly 78% of the bank’s total operating income. MSB’s fee income from bancassurance and foreign exchange also contributed significantly to the bank’s growth in the past year.

Vietcombank Securities analysts believe that MSB’s advantages of low deposit costs, high growth rate, and profits from insurance cooperation deals and subsidiary transfers will help the bank supplement capital to develop retail banking and core business activities in the long term.

In 2022, MSB is restructuring its assets by increasing the proportion of lending to individual and SME customers and reducing the proportion of high-risk areas. MSB’s lending structure will shift towards production and distribution of electricity and energy, as well as commercial loans for light industrial goods and consumer goods.

MSB’s demand deposit ratio (CASA) is over 30%, which is one of the highest in the industry. In 2022, the bank’s demand deposit balance is expected to continue growing, and the demand deposit rate reached 31.2%, with the average CASA rate in 2022 at 36%. The high CASA ratio and optimization of capital structure have made MSB one of the few banks to keep NIM growing.

As of December 31, 2022, MSB’s total assets reached more than VND 213,000 billion, an increase of approximately 5% compared to the previous year. The outstanding loan-to-deposit (LDR) ratio was 68.77% (compared to the 85% limit) and the short-term capital ratio for medium and long-term loans of the banking segment was controlled at 23.57% (compared to the requested 37%). The bad debt ratio (NPL) of the banking segment according to Circular 11/NHNN is at 1.21%, and the restructuring debt balance is only about VND 1,400 billion.

Recently, MSB was granted the best credit limit among banks by the State Bank of Vietnam at 13.5%, mainly due to the much lower LDR ratio compared to other banks, according to VNDirect. SSI Securities Joint Stock Company forecasts that the pressure to mobilize capital will be clearer in 2023, when deposit interest rates are expected to increase.

Related

Source: Vietnam Insider

The HCM City Development Joint Stock Commercial Bank ( HoSE: HDBank) is seeking shareholders’ approval to issue convertible bonds worth US$500 million to international investors.

HDBank is also seeking approval to increase the foreign ownership limit to 20 percent from 18 percent.

In 2020 and 2021 the lender has issued convertible bonds worth $325 million to well-known financial institutions including Affinity Equity Partners, IFC, DEG and Leapfrog Investments, according to announcement on the Bank’s website.

Bondholders may choose to convert their bonds into common shares of the Bank.

Related: Here’s how to acquire a business in Vietnam as foreign investors

Proceeds from the issuance will help the bank supplement its medium- and long-term capital, and get ready for high growth plans in line with its strategy.

At the same time the proceeds will help enhance the lender’s asset quality indicators, capital adequacy ratio, and get it ready to soon adopt Basel III standards.

HDBank currently has charter capital of VNĐ25.3 trillion (US$1.02 billion).

The maximum foreign ownership limit (FOL) is to be lifted from 18 per cent to 20 per cent. HDB shares receive strong interest from foreign institutional investors who net purchased more than 21 million of HDB shares this year and the FOL of 18 per cent has been reached.

At a recent conference, Chairman Kim Byoungho said HDBank received strong interest from foreign investors as their third quarter business results were the best ever. HDBank forecasts its pretax profit to exceed 10 trillion dong this year, up 25% year-over-year.

Despite the market volatility, HDBank maintains its B1 credit rating, its non-performing loan ratio is among the healthiest in the industry and it tops the industry in profitability and capital adequacy ratio.

Related

Source: Vietnam Insider

• Two foreign banks have invested VND7 trillion in Vingroup, owned by the dollar billionaire Pham Nhat Vuong, amid the enterprise’s daring moves and new records made in the Vietnam’s stock market.

• More stories at Vietnam Insider’s homepage.

The Vietnam Securities Depository Center (VSD) reported that Vinpearl JSC has completed the transfer of 57.6 million VIC shares of Vingroup to two foreign financial institutions.

Vinpearl transferred more than 9.3 million VIC shares to Deutsche Bank AG London and 48.3 million VIC shares to Credit Suisse Hong Kong Ltd last June.

This is the deal to exercise the right to swap shares associated with international bonds approved by SSC. Since the beginning of June, Vinpearl has transferred more than 58.59 million VIC shares, worth nearly 7 trillion VND according to the market value.

Deutsche Bank AG London and Credit Suisse (Hong Kong) were the bond holders of Vinpearl in a campaign of issuing $450 million worth of international bonds (VND10 trillion), listed at the Singapore Stock Exchange in 2018.

Under an agreement, bond holders have the right to swap a part or all the shares with common shares of Vuong’s Vingroup at the price of VND138.526 per share, and the price can be adjusted after one, two, three and four years after the issuance date.

On December 31, 2020, the value of swapped bonds shown in the audited finance report of Vingroup was over VND5.5 trillion, equivalent to a swap price of VND93,000 per share. The current price is VND117,000 per share.

In mid-June 2020, Vinpearl bought back more than $209 million worth of principal. And the bond holders of Vinpearl activated the clause on swapping the remaining value to receive VIC shares, wrapping up the bond final settlement after three years.

Vingroup billionaire Pham Nhat Vuong has made great strides over the last three years. It has shifted its business core to technology and industry instead of real estate.

Vingroup is now gathering strength on manufacturing cars with the VinFast brand, while it has transferred the retail division (Vinmart) to Masan Group owned by billionaire Nguyen Dang Quang. It has also given up some other fields, including mobile phones, TVs, football, home appliance distribution, and agriculture production.

Vingroup even nurtures an ambitious plan on selling VinFast cars in the US and many other markets, including neighboring Laos.

The Financial Times noted that Vuong has extraordinary confidence in his dreams, and if the IPO succeeds, VinFast may have a capitalization value of up to $60 billion, which is even higher than that of Ford Motor.

Vingroup not only wants to sell cars but also high-end vehicles, including electric cars, which is still a new field.

Vingroup plans to have revenue of VND170 trillion in 2021.

This article was original posted in Vietnamnet.

Related

Source: Vietnam Insider

Foreign investors have poured 15.27 billion USD of investment in Vietnam so far this year, equivalent to 97.4 percent of the amount recorded in the same period last year, according to the Ministry of Planning and Investment (MPI).

The ministry reported that as of June 20, 9.55 billion USD had been injected into 804 newly-licenced projects, up 13.2 percent year on year.

Meanwhile, 4.12 billion USD had been added into 460 underway projects, a year on year rise of 10.6 percent. Foreign investors also poured 1.61 billion USD in share purchase deals in Vietnam, according to the ministry.

Meanwhile, the disbursement of FDI in the period rose 6.8 percent year on year to 9.24 billion USD.

Among the 18 sectors attracting FDI, manufacturing-processing lured the highest amount at 6.98 billion USD, accounting for 45.7 percent of the total investment, followed by power production and distribution with 5.34 billion USD, making up nearly 35 percent of the total investment.

Singapore leads the 80 countries and territories investing in Vietnam with investment of 5.64 billion USD, followed by Japan with 2.44 billion USD, and the Republic of Korea with 2.05 billion USD.

As of June 20, the country had hosted 33,787 FDI projects worth 397.89 billion USD totally, of which 241.1 billion USD, or 60 percent, had been disbursed.

The export revenue of the foreign-invested sector has continued to rise at 32.2 percent to 116 billion USD (including crude oil), accounting for 74.1 percent of the country’s total export revenue. The sector’s revenue excluding crude oil reached 115.3 billion USD, up 32.6 percent year on year.

The sector imported 102.6 billion USD worth of goods in the period, up 38.7 percent year on year. As a result, in the first half of this year, it enjoyed a trade surplus of 13.4 billion USD including revenue from crude oil.

The MPI also reported a trade deficit of 14.9 billion USD by domestic businesses.

This article was originally published in Vietnamnet

Related

Source: Vietnam Insider

Vietnam has been considered a bright spot in ASEAN by investors thanks to its political stability, sustainable economic growth, abundant workforce, large market, increasing per capita income, intensive international integration, competitive incentives, plus its geographical location in the center of Southeast Asia.

As a foreigner, registering a new company in Vietnam can create value in many ways. You can access new markets, break through talent shortages in your home country, make significant savings to your overheads.

Getting the product on the market quicker and cheaper can extend your startup runway. This can be ‘make or break’ for a startup!

Related: Company formation in Vietnam

Of course, starting a business in Vietnam can be challenging, especially if you are new to the region. Here is the practical guide to the administrative costs you face. The writer has focused this guide on software development companies or tech startups owned by foreigners.

Company formation and Licensing

Creating a company in Vietnam is more complex than in countries like the US, Australia or Singapore. Vietnam requires multiple layers of restrictions, verification and review.

It may take up to 3 months for the creation of a new foreign-owned company. In practice, much of this time may be required to get the necessary documents. Certain documents will need to be authorized both in your home country and locally in Vietnam.

A typical foreign entrepreneur will seek assistance to identify the relevant type of company to register, gather and translate any documents, and engage with authorities throughout the application process. Foreigners also tend to need assistance to open the required bank accounts.

Company registration costs depend on the specific type of business you are opening in Vietnam. The Department of Planning and Investment will review your application and will consider the capital necessary for the business to be established. The minimum capital requirements vary depending on the type of business you intend on opening. Some businesses may require licenses to operate.

Total costs can vary, but for a foreign entrepreneur seeking a new software development company, assume you’ll incur up to $5,000 USD in fees, with a minimum capital value of $10,000 USD. This capital needs to be settled into a bank account in Vietnam and you can then start using it for company expenses once the registration is complete and local bank accounts have been set up.

Taxes Applicable to a Startup

Your startup company in Vietnam will need to pay several types of tax:

• Business license tax. This is charged right after your company is registered, and then paid on an annual basis thereafter. For a typical small-capital company, the business license tax is 2m VND per year ($85 USD).
• Value Added Tax (VAT): generally assume 10% on most transactions, but the actual rate depends on the product or service your company is using. This can be debited and credited.
• Company income tax (CIT): the tax rate is 20% on company profits, but there are some exemptions. For example, software development companies may gain an incentive tax rate and there is discussion of lower tax rates for SMEs.

If you’re purchasing services from a foreign contractor, you will also need to consider Foreign Contractor Tax (FCT). The specific tax rate depends on the service and your company will pay directly to the government on behalf of the foreign contractor.

Don’t forget labour taxes paid by employers. Each month, an employer is required to pay several forms of social security related to its employees. Social insurances are 17.5% of their gross monthly salary. A further 3% is charged for health insurance, 1% for unemployment insurance and 2 % for trade unions.

Finally, your employees are also obligated to pay personal income taxes and insurance. These are separate and additional to the labor taxes paid by the employer (mentioned above), but there can be an expectation by employees that the company will also bear the cost of their obligations. Employees will often negotiate on the basis of a net pay. While this attitude is changing, beware of this expectation during salary negotiations.

There are certainly Vietnamese customers out there somewhere waiting for your products, technologies, and services – so why not reach out to Vietnam market today with GBS’s Market Entry Consulting Services?

The GBS’ market entry services team will explain the different options available to you and guide you through the most relevant parts of this vital business development process, so that you can join GBS’ other highly successful clients who are now doing “hassle free” business in new international markets.

Contact Sophie Dao, Partner of GBS at: sophie@gbs.com.vn or visit: https://gbs.com.vn

Global Business Services (GBS) LTD and Vietnam Insider join hands to present the “Inside Out” webinar series, shedding light on Vietnam’s situation during the COVID-19 period to support foreign investors dealing with a dynamic business, regulatory, legal and operational landscape.

The webinar will be moderated by Rahn Wood, the founder of “Inside Out” and Partner of GBS.

Rahn is an internationally experienced executive with over 30 years of achievements in Retail, Commercial & Digital Banking, Cards and Payments. He has performed executive roles at some of the most prestigious financial institutions including HSBC, Vietnam International Bank, Techcombank, Saudi British Bank, Macquarie Bank, MasterCard, ANZ Bank and most recently as CEO of Mai Linh, Vietnam’s largest taxi firm.

He is an engaging and bold leader with excellent analytic skills who is able to communicate between the boardroom and the showroom.

In the initial Inside Out webinar on 01 October, there will be presentations and Q&A from speakers as follows:

• Conditions in the Real Economy – Richard Burrage, Managing Director of Cimigo Vietnam
• Debtor Management in Covid-19 conditions: Oliver Schwartzhaupt, Chief Risk Officer, Vietnam Maritime Bank (MSB)
• Legal framework & process – Tran Minh Thu (Katleen), Principal Lawyer, Viclaw
• Moderator: Rahn Wood, Partner of GBS

The main focus of the webinar will be on the success of Vietnam in combatting the Covid-19 pandemic, the ongoing economic challenges, and Vietnam’s policies to recover and develop the economy.

The webinar aims to attract over 500 real-time viewers, who are individual investors, business owners and representatives from several investment funds, enterprises in different countries.

If you are a foreign investors, expatriate or business partner, who is hungry for insights about Vietnamese business conditions, this is where you can hear directly from leaders across sectors!

Register now!