Business

Foreign investors net buy VND560 billion in first half of June

SGGP
Amid the context that the stock market was gloomy, in the first two weeks of June, foreign investors net bought nearly VND560 billion, of which they net bought nearly VND500 billion on the Ho Chi Minh City Exchange alone.
Investment funds in Vietnam also attracted investment again thanks to cash flow pumping heavily into fund certificates.

Particularly, according to figures by IndexUniverse, in the first week of June alone, there was US$8.8 million being poured into VanEck Vectors Vietnam ETF. In the first two weeks, foreign investors bought more than 41.5 million fund certificates of VFMVN30 ETF for nearly VND600 billion.

According to experts, the reason foreign investors pump investment into Vietnam’s market is that the US dollar exchange rate against the Vietnamese dong has become stable recently, backing for net buying. When foreign investors inject money into Vietnamese market, their money will be converted from the US dollar to Vietnamese dong and when they withdraw their money, the money will be converted back from Vietnamese dong to the US dollar.
Therefore, exchange rate is always one of the most important factors affecting the behavior of foreign investors. If the Vietnamese dong is depreciated heavily, profits from investments will be totally erased so stable exchange rate will help to keep investment steady.

By Che Han – Translated by Thuy Doan

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