HO CHI MINH CITY – Vietnam's benchmark VN-Index surged to a new all-time high in the latest trading session, a milestone celebrated by domestic investors. However, the record-breaking rally was overshadowed by a starkly contrasting trend: a massive and aggressive sell-off by foreign investors, creating a climate of uncertainty and raising critical questions about the rally's sustainability.
During the session on Friday, August 15, 2025, the VN-Index surpassed its previous peak, climbing past the 1,550-point psychological threshold driven by a wave of optimistic domestic buying. The market was fueled by strong performances in key blue-chip stocks, particularly within the banking, real estate, and industrial manufacturing sectors. Major contributors to the index's rise included shares of Vietcombank (VCB), steel giant Hoa Phat Group (HPG), and property developer Vinhomes (VHM).
The atmosphere among local retail investors was largely euphoric, as the new peak marks a significant recovery and growth trajectory for the Vietnamese stock market. This bullish sentiment is largely attributed to Vietnam's stable macroeconomic outlook and strong corporate earnings reports.
However, lurking beneath the surface of this record-setting performance was a significant red flag. While domestic buyers poured money into the market, foreign investors moved aggressively in the opposite direction. Data from the Ho Chi Minh Stock Exchange (HoSE) showed a heavy net selling position from the foreign bloc, with the total net value of shares offloaded exceeding VND 2 trillion (approximately US$80 million) in a single session.
This divergence between domestic and foreign sentiment has become a major point of discussion among market analysts. The massive outflow of foreign capital, even as the market hits a new peak, suggests a deep-seated caution from international players. Potential reasons for the sell-off could range from global economic headwinds and profit-taking after a prolonged bull run to a strategic reallocation of funds to other emerging markets.
"We are witnessing a classic divergence that demands careful consideration," said a senior analyst at a Ho Chi Minh City-based brokerage. "The rally is currently being supported almost entirely by the powerful momentum of domestic cash flow, especially from a growing base of retail investors. While this demonstrates the strength of the local market, the persistent selling from foreign investors, who often take a longer-term macroeconomic view, cannot be ignored."
This trend raises crucial questions for all market participants: Is the domestic optimism sustainable enough to continue absorbing the heavy selling pressure from abroad? Or is the foreign exodus an early warning signal of an overvalued market?
As the VN-Index stands at its historic pinnacle, investors are now at a crossroads. While the new record is a testament to the resilience of Vietnam's economy, the conflicting signals from different investor groups suggest that the path forward may be fraught with volatility. The next few trading sessions will be critical in determining whether this is the beginning of a new, sustained rally or simply the peak before a significant market correction.
