Yuanta Vietnam Securities Chairman Analyzes Reasons for Continuous Foreign Net Selling

Foreign investors' continuous net selling on the Vietnamese stock market remains a concern among market participants. Mr. Wang, Chairman of Yuanta Vietnam Securities, has presented concrete solutions for Vietnam to meet the stringent criteria for market reclassification by MSCI (Morgan Stanley Capital International) and attract foreign capital back. Mr. Wang pointed out that for the Vietnamese market to become a more attractive investment destination for foreign capital, it must address challenges such as improving transparency, developing market infrastructure, and simplifying regulations. He particularly emphasized that improvements in market accessibility for participants, trading efficiency, and corporate governance, which MSCI prioritizes, are key to achieving reclassification. The Vietnamese economy has maintained robust growth in recent years, demonstrating particular strength in manufacturing and exports. However, the movements of foreign capital significantly impact market liquidity and stock prices, necessitating close monitoring. Mr. Wang's proposals could potentially raise expectations for a market recovery, as they offer concrete approaches to the challenges Vietnam faces. On the domestic economic front, a significant increase in electricity prices in June is burdening households, causing widespread concern among consumers. Furthermore, the continued refusal of some food service businesses to lower prices, despite a drop in gasoline prices, is drawing dissatisfaction from consumers. In the agricultural sector, the sharp decline in durian prices in Malaysia due to a bumper harvest is also affecting producers in Vietnam. On the other hand, China's strengthening of its inspection system for Vietnamese durian and mango, with some facilities being certified, can be seen as a positive step towards expanding exports. Vietnam is also facing increasing policy pressures in international trade. The U.S. Trade Representative's Office has noted a growing trend in the application of trade policies towards Vietnam's imports and exports, making future trade relations a crucial point to watch for Vietnam's export-dependent economy. In response to these economic and market challenges, the Vietnamese government and relevant agencies are exploring policies to enhance market attractiveness and ensure sustainable growth. Mr. Wang's proposals are considered important insights, incorporating the perspective of foreign capital, as part of these efforts.