Foreign investors have been strongly net selling on the domestic stock market, focusing on many blue-chip stocks, putting pressure on the market's sentiment. However, this net selling and capital withdrawal by foreign investors is not yet a worrying trend.
Twenty-one auctions were held at the Hanoi Stock Exchange (HNX) in the first half of 2018, including 14 for capital withdrawal, six for initial public offering (IPO) and one for purchase rights.
Some foreign banks have assured that they will retain their presence in Vietnam after withdrawing capital from some Vietnamese partners recently, noting that the country is still an attractive market.
As many as 96.5 percent of State-owned enterprises (SOEs) was equitised as of the end of March this year, but the privatized capital amount from these reached only 8 percent.
The Government of Malaysia’s bonds owned by foreign investors, which shrank last September, may have another drop when withdrawals continue, Malaysia’s The Star newspaper reported on October 14.
