ETF Capital Continues to Flow Out of Vietnamese Stock Market Despite Optimism

Strategic Insights -

Foreign investors remain cautious about the Vietnamese stock market, with over VNA210 billion in ETF outflows between May 12 and 16, following a similar trend in the previous week. This net outflow has exacerbated the year-to-date decline in total net assets held by ETFs in Vietnam, which now stands at approximately VNA52.4 trillion, a 7.8 per cent drop compared to the end of 2024. Despite ongoing trade negotiations and Vietnam's potential market upgrade, the withdrawals are attributed to concerns over US tariff policies, exchange rate volatility, and valuation in major global markets.

Key Takeaways:

  • Total net outflow of over VNA210 billion from ETFs in Vietnam between May 12 and 16, marking the second consecutive week of withdrawals.
  • Year-to-date outflow of over VNA6.8 trillion, with a total net asset decrease of 7.8 per cent compared to the end of 2024.
  • Domestic ETFs, particularly VFM VNDiamond ETF, witnessed significant redemptions, with net outflows of nearly VNA74 billion last week and over VNA600 billion in April alone.
  • Only a few ETF funds, such as MAFM VN30 and KIM Growth VN30, recorded slight inflows, while foreign ETFs showed no signs of significant rebound.
  • Fubon FTSE Vietnam ETF, VanEck Vietnam ETF, and Xtrackers FTSE Vietnam Swap UCITS ETF continued to experience net redemptions throughout April and early May, with a minor inflow of VNA7 billion on May 19 not enough to reverse the trend.
  • ETF net outflows totalled VNA2.54 trillion in April alone, with assets under management falling below VNA50 trillion for the first time in nearly two years since peaking at VNA83.1 trillion in July 2023.

Statistics:

  • VNA210 billion: Total net outflow from ETFs in Vietnam between May 12 and 16.
  • VNA6.8 trillion: Year-to-date outflow of ETFs in Vietnam.
  • 7.8 per cent: Decrease in total net assets held by ETFs in Vietnam compared to the end of 2024.
  • VNA74 billion: Net outflow from VFM VNDiamond ETF last week.
  • VNA600 billion: Total outflow from VFM VNDiamond ETF in April alone.
  • VNA2.88 trillion: Net buying via matching orders on the domestic exchange in the week of May 12-16, the highest level in two years.

Sources:

  • FiinTrade
  • SSI Research
  • vneconomy.vn (Yuanta Securities Head of Retail Research, Nguya ...n Thao? Minh)