South Korean retail investors are increasing their exposure to Vietnamese equities as the Kospi stagnates, with inflows driven by optimism over Vietnam’s growth outlook and a potential market status upgrade by FTSE Russell, The Korea Economic Daily has reported → view source.
Key details in the article include:
- Investment surge: South Korean holdings in Vietnamese stocks rose 22.1 percent to US$290.3 million by 2 September, compared with April.
- ETF flows: The ACE Vietnam VN30 ETF attracted 3.9 billion won (US$2.8 million) from retail investors in August, reversing prior outflows, plus 1.4 billion won in the first two days of September.
- Performance: The ETF gained 15.67 percent in August, ranking 22nd on the Korea Exchange, as Vietnam’s VN-Index jumped 12 percent.
- Growth drivers: Vietnam’s GDP grew 7.5 percent in H1 2025, aided by economic stimulus and a US tariff deal cutting duties on exports from 46 percent to 20 percent.
- Upgrade hopes: Investors anticipate a September FTSE Russell decision on raising Vietnam from frontier to emerging market status.