Foreign investors sold more than $2 billion worth of shares on Vietnam’s Ho Chi Minh City Stock Exchange (HoSE) from January through July 2024, marking one of the sharpest selloffs since the pandemic. Analysts say high U.S. interest rates, a stronger dollar, and limited access to high-tech or semiconductor-related stocks are driving capital outflows across Southeast Asia, including Vietnam.
Most foreign holdings in Vietnam remain concentrated in banking, real estate, and consumer sectors — areas currently out of favor. Experts note that foreign ownership caps and a shortage of large, investable companies continue to limit inflows. However, sentiment could improve once the U.S. Federal Reserve begins cutting rates and Vietnam advances toward an emerging-market upgrade.
This article is a condensed and translated summary (original in Vietnamese, VN) of a feature published in the August 2024 issue of Bloomberg Businessweek Vietnam.