Foreign capital will soon return to the stock market.

Solid factors attracting foreign capital flows

In the early trading sessions of September, the stock market continued to record net withdrawals from foreign investors.

Previously, in August, foreign investors also sold strongly with a value of -42.7 trillion VND, in contrast to the net buying of +8.5 trillion VND in June, bringing the total net selling since the beginning of the year to 77.7 trillion VND.

Selling pressure in August concentrated in the sectors of Real Estate (-16.2 trillion VND), Banking (-7.4 trillion VND), Basic Resources (-5 trillion VND), Information Technology (-4.8 trillion VND), and Financial Services (-3.1 trillion VND).

Regarding specific stocks, foreign investors net sold mainly at VIC (-13 trillion VND, mainly through agreements),FPT (-5 trillion VND), HPG (-4.8 trillion VND), VPB (-2.5 trillion VND), SSI (-2.1 trillion VND), VHM (-1.7 trillion VND), CTG (-1.5 trillion VND), MBB (-1.2 trillion VND), VCB (-1 trillion VND).

Assessing the movement of this cash flow, SSI Securities said that in the context of global capital flows rotating to the US and Chinese markets, along with the VN-Index increasing strongly by +32.7% in the first 8 months of the year, foreign investors' profit-taking activities are understandable.

However, SSI affirms that the medium- and long-term outlook remains positive. Solid supporting factors come from the Market Upgrade Story (FTSE and longer term MSCI) and the double-digit GDP growth target in the next 5-year cycle with a comprehensive institutional reform program, focusing on private sector development.

With the above factors, SSI expects the Vietnamese market to soon welcome the return of foreign capital in the coming period.

As scheduled, FTSE Russell will release the FTSE Equity Country Classification Annual Report September 2025 after the US market closes on Tuesday, October 7, 2025 (equivalent to October 8, 2025 Vietnam time).

Vietnam is on FTSE's watch list and is assessed by FTSE to be reclassified from Frontier Market to Secondary Emerging Market. The upgraded market will be accompanied by positive foreign capital flows into Vietnam's stock market. According to the most optimistic scenario given by HSBC, FTSE's upgrade can attract a maximum of 10.4 billion USD of foreign capital into the Vietnamese stock market.

New series of regulations attract foreign capital

The market will also receive great impetus from policy. Recently, on September 11, 2025, the Government issued Decree 245/2025/ND-CP amending 89 articles and abolishing related contents in a number of clauses and points in 22 articles of Decree No. 155/2020/ND-CP.

This is considered an important step to attract foreign investment, protect investors, increase transparency and management efficiency, and especially to attract foreign capital in the stock market.

Decree 245/2025/ND-CP focuses on removing barriers for foreign investors with procedures for recognizing professional securities investor status adjusted to comply with foreign legal documents, creating convenience when participating in private issuances.

The rights of foreign investors are also more clearly guaranteed in buying and selling shares on the stock market.

With the goal of opening up market access to foreign investors, the amended Decree abolishes Point e, Clause 1, Article 139 of Decree No. 155/2020/ND-CP, thereby no longer stipulating that the General Meeting of Shareholders and the Charter of a public company can decide on a maximum foreign ownership ratio lower than the level prescribed by law and international commitments.

For public companies that have notified the maximum foreign ownership ratio according to Point e, Clause 1, Article 139 of Decree No. 155/2020/ND-CP, this ratio may continue to be maintained or may be changed in an increasing direction to gradually approach the level prescribed by law.

At the same time, the Decree also adds a transitional provision stipulating the deadline for public companies to complete the procedure for notifying the maximum foreign ownership ratio (within 12 months from the effective date of Decree No. 245/2025/ND-CP), because currently many public companies have not completed this procedure, so the market has not correctly reflected the maximum foreign ownership ratio at public companies.

In fact, the maximum foreign ownership ratio of public companies has been made public and transparently disclosed on the websites of enterprises and the Stock Exchange; in particular, the Vietnam Securities Depository (VSDC) has updated and published on its website daily the maximum foreign ownership ratio and the existing ratio of foreign investors in each public company so that investors can know and trade.

The procedure for granting transaction codes to foreign investors has also been simplified. Decree No. 245/2025/ND-CP has shortened the procedure for VSDC to send online transaction code confirmation (ESTC) to depository members so that depository members can notify foreign investors within 1 working day from the date of receiving declaration information from depository members without having to submit paper documents as before. Thus, according to the new regulations, foreign investors can trade immediately after being granted ESTC and in accordance with international practice.

In addition, the State Bank also issued Circular No. 03/2025/TT-NHNN dated April 29, 2025, Circular No. 25/2025/TT-NHNN dated August 31, 2025, amending and supplementing many regulations to simplify procedures for opening indirect investment capital accounts, opening payment accounts for foreign investors, reducing time and costs of accessing the market, contributing to improving the ability to access and circulate capital, towards the goal of upgrading the Vietnamese stock market to a new market.

In addition, the Decree also supplements regulations on allowing foreign securities investment fund management companies when investing in the Vietnamese securities market to be granted 2 securities transaction codes to optimize the management process and separate internal monitoring according to each type of activity (self-trading, customer transaction management) of foreign fund management companies, which is the basis for implementing the total transaction model (OTA - Omnibus Trading Account) according to international practices.

Source: https://baodautu.vn/von-ngoai-se-som-quay-lai-voi-thi-truong-chung-khoan-d383920.html