Net asset of ETFs in Vietnam exceeds $2.28 bln
Institutional reforms, macroeconomic stability, and sustainable growth create a distinct appeal for Exchange-traded funds (ETFs) in Vietnam.
ETF flows slow in first half of June
Capital flows through exchange-traded funds (ETFs) into Vietnam have reached a net value of $109.3 million since the beginning of June. Analysts said that rising inflation in the US and signs of the US Fed increasing interest rates have resulted in money being withdrawn from stock markets, including in Vietnam, causing ETF flows to slow.
ETFs focused on Vietnam
Figures from KIS Securities show that in the week May 30 to June 3, inflows from exchange-traded funds (ETFs) into Southeast Asia reached $145 million and rose the highest for eight years, with Vietnam alone attracting $85 million. The fact that the VND is gaining against other currencies is a positive factor supporting net withdrawals by ETFs.
Nearly $150mln of ETF capital goes into stocks in May
Data from KIS Securities shows that, in May, ETF (exchange-traded fund) capital in Vietnam’s stock market reached $147.4 million through 12 funds. With S&P Global Ratings having upgraded Vietnam’s long-term national credit rating to “BB+” with a stable outlook, it is expected that ETF capital into its stock market will grow further in the future.
ETF flows hit record
Capital flows from exchange-traded funds (ETF) into Vietnam in the week between May 16 and 20 hit a record $115 million, according to KIS Securities. Most ETFs greatly appreciate the Vietnamese market thanks to its stable macroeconomy and high business growth.
ETF capital in April at nine-month high
According to SSI Research, while Vietnam’s stock market saw a net withdrawal in April, capital to ETFs (exchange-traded funds) were strong, with a total value of VND1.69 trillion ($73.29 million); the highest in nine months. The market therefore recorded a net capital inflow in the first four months of the year.
Investment continues to flow
Active funds saw a net withdrawal of $191.6 million in the first seven months of 2021, while exchange-traded funds (ETFs) saw a net withdrawal of nearly $700 million. Vietnam is still receiving the most foreign capital in Southeast Asia. August ETF inflows, however, are likely to be weaker than in July. Some experts believe that this is due to the risk of inflation and the ongoing pandemic.