World's second largest asset manager Vanguard to pour $2.5B into Vietnam stocks

Vanguard, the world's second-largest asset management firm, plans to invest $2.5 billion in Vietnam's stock market, according to Duncan Burns, head of Investments and Global Equity for Asia-Pacific at the company. This substantial sum surpasses previous projections from Vietnamese analysts, who had forecasted a range of $1 billion to $2 billion.

The financial expert revealed that securities listed in prominent benchmark indices generally enjoy higher visibility, thereby appealing to a wider array of investors and facilitating access to global capital. Burns emphasized that Vanguard's involvement would enable numerous investors, despite lacking prior exposure to Vietnam, to participate in the country's sustainable economic growth.

On September 21, Vietnam's stock market is set to achieve an "emerging" status under FTSE Russell's criteria, thereby increasing the potential for international investment. It is anticipated that Vanguard's funds, which adhere to the FTSE Global Equity Index Series, will make net purchases totaling around $240.5 million across 27 Vietnamese stocks.

Established in 1975, Vanguard currently manages an impressive $13 trillion in assets for over 60 million investors worldwide. In FTSE's most recent portfolio, released at the end of August, 27 Vietnamese stocks were incorporated into the firm's emerging market index basket. This global stock index series aspires to encapsulate almost the entirety of the investable equity market worldwide.

Divided by market capitalization, three stocks were categorized as large-cap: Vietcombank, Vingroup, and Vinhomes. Mid-cap stocks comprised BIDV, Hoa Phat Group, and VPBank, while the remaining 21 tickers belonged to the small-cap group. Finance Minister Ngo Van Tuan expressed on Friday that administrative bodies would persist in enhancing governance quality and market discipline.

His ministry will establish the necessary legal framework for novel market models and products in alignment with contemporary market development trends. Tuan affirmed that the agency would continue implementing reforms to develop a transparent, secure, and attractive capital market, aiming to foster conditions conducive to investors, particularly foreign investors, and improve market accessibility in accordance with international standards.