News and Insights

Ms. Tô Thùy Linh offered valuable insights into the opportunities and challenges facing the Vietnamese stock market as it approaches a potential market upgrade. She discussed several solutions for the asset management sector to enhance the attraction of international investment. “Based on our discussions with both current and prospective foreign investors, we observe that confidence and demand for the Vietnamese stock market remain strong. Following the US's Federal Reserve's interest rate cuts and the recent approval of Circular 68, which eliminated pre-funding requirements for foreign investors, we have clearly seen a resurgence of foreign capital in Vietnam since late September. Net selling pressure has significantly decreased, with net sales from October 1 to October 18 amounting to just $57 million. It is clear that the main issue for foreign demand, according to our observations at SSIAM, is the availability of stocks and investment options for these investors.”

 

While Vietnam possesses numerous advantages for attracting international investment, issues related to stock supply could lead foreign investors to consider markets with abundant opportunities.

In discussing solutions to broaden foreign investment attraction, Ms. Tô Thùy Linh emphasized that local fund management companies must develop products tailored to the needs of foreign investors to facilitate their access to the Vietnamese stock market. It is also crucial to target the right market segments and customer profiles. Furthermore, to expand distribution networks internationally, appropriate regulations and guidelines are needed to enable foreign partners to easily distribute Vietnamese investment products. Finally, it is essential to explore measures that address currency risk management for foreign investors.

SSIAM is committed to developing products that meet the needs of foreign investors and collaborating with market participants to promote the sustainable growth of Vietnam's fund management industry.