While foreign capital is rushing out of Vietnam, Taiwanese and Korean capital flows through ETFs are entering the country strongly... Statistics from FiinTrade show that foreign investors continued to sell net in April, but the net selling value decreased by half. Notably, Taiwanese and Korean capital flows through ETFs into Vietnam recorded an increase.
NET SALES VALUE DECLINED
The net selling value of foreign investors on the three exchanges (HOSE, HNX and UPCOM) reached more than VND 5.3 trillion in April 2024. This is the third consecutive month of negative net cash flow, however, the net selling scale has decreased by -52.8% compared to March 2024. Nearly 81% of the net selling value of foreign investors in April 2024 was executed through order matching.
Accumulated in the first 4 months of 2024, foreign investors net sold VND 16.8 trillion, equivalent to VND 73.91 trillion of net selling value in 2023 (more than VND 22.8 trillion).
Looking at the 1-year time frame, foreign investors' net selling has shown no signs of stopping. Over the past 12 months, foreign investors have net sold a total of VND45.3 trillion, with strong sales concentrated in December 2023 and March 2024.
Domestic individuals have been net buyers in response to foreign net selling pressure since April 2023, in the context of 12-month savings interest rates falling below 5%/year.
In April 2024, foreign organizations maintained net selling, mainly from the Active group: The total net selling value of foreign organizations recorded 5.8 trillion VND, this is the third consecutive month of negative cash flow. Specifically, the Active group accounted for 87% of net selling value in the month and the rest came from ETF funds.
Accumulated in 4M2024, foreign organizations net sold equivalent to 76% for the whole year of 2023: The total net selling value of foreign organizations reached more than 19 trillion VND, equivalent to 76% of the total net selling in 2023. Of which, the group actively net sold 15.7 trillion VND and ETF funds accounted for the rest (3.3 trillion VND).
TAIWANESE AND SOUTH KOREA CASH FLOWS STRONGLY INTO VIETNAM
Looking at the 1-year time frame, the net selling trend has been increasing continuously in the active group. Meanwhile, ETF cash flow has been less volatile but has begun to show a net selling trend. In the 12-month accumulation, the Active group has net sold a total of 41 trillion VND.
Active group net bought Retail while strongly net sold Real Estate, Financial Services: In April 2024, the Active group net bought Retail (MWG) and strongly net sold Real Estate (VHM, VIC), Financial Services (VCI, VND, and SSI).
Meanwhile, the ETF fund group focused on strong net selling of Banking: The ETF fund group strongly net sold the Banking sector, focusing on stocks that have full "foreign room" in the VNDiamond basket such as TCB, MBB, and ACB.
Foreign ETF funds recorded a net withdrawal of more than VND365 billion in April 2024. This is the fourth consecutive month that this fund group has been under net withdrawal pressure with a cumulative value since the beginning of 2024 of more than VND3.3 trillion, compared to a net inflow of VND4.1 trillion in 2023.
Net withdrawals mainly came from the Xtrackers FTSE Vietnam ETF (-408 billion VND) and the iShares MSCI Frontier and Select ETF (-201 billion VND).
More positive signals from some foreign funds such as Fubon FTSE Vietnam ETF (+55.7 billion VND), KIM Growth (+176 billion VND), KIM Kindex (+149 billion VND).
Domestic ETF funds continue to have strong net withdrawals: In April 2024, the net withdrawal value of domestic ETF funds was VND 2.4 trillion, down from the net withdrawal level in March 2024. However, it should be noted that this is the 9th consecutive month that this group of funds has been under net withdrawal pressure. In the first 4 months of 2024, the total net withdrawal value of domestic ETF funds was VND 7.9 trillion (equivalent to 1.37 times the net withdrawal value in 2023).
Most of the net withdrawal value was recorded in 2 funds under DC, VFMVN Diamond ETF (-1.8 trillion VND) and VFM VN30 ETF (-181 billion VND). In addition, SSIAM VNFIN LEAD ETF also had a net withdrawal of more than 559 billion VND.
Capital inflows into ETFs in April 2024 mainly came from Korea (KIM GROWTH VN30, KIM ACE Vietnam VN30), Taiwan (Fubon FTSE Vietnam ETF). The holdings of these funds are mainly Steel (HPG), Information Technology (FPT), and Food and Beverage (VNM, MSN).
On the contrary, capital flows from Europe (Xtrackers FTSE Vietnam Swap UCITS ETF), the US (iShares MSCI Frontier and Select EM ETF), Asia (DCVFMVN DIAMOND ETF, SSIAM VNFIN LEAD ETF) continued the net withdrawal trend.
The net selling scale of the Foreign Active group has decreased but remains high: In April 2024, the net selling value of the Foreign Active group was VND 5.4 trillion, 43.4% lower than the net selling level in March 2024. However, considering the time frame of the past 1 year, the net selling value in April 2024 is still relatively high. Accumulated in the first 4 months of 2024, the Active group net sold VND 15.7 trillion, equivalent to 38% of total net selling value in 2023 (VND 41.3 trillion).
Foreign active fund VEIL recorded a net withdrawal of more than VND 116 billion while PYN Elite fund continued to have a net inflow for the second consecutive month, with more than VND 75 billion in April 2024.
Source: VnEconomy
