The IPO of Vietnam’s first domestic
exchange-traded fund (ETF) shows that foreign investors have
revived their interest in the country’s equity
But investment restrictions in listed companies
mean that overseas ETFs may not be able to maintain their
Vinafund raised VND 200 billion ($9.4 million) in
the VFMVN30 IPO on the Ho Chi Minh City Stock
Exchange (HOSE), which ran from July 21 to August 20. The fund
will follow the VN 30 index, which is managed by HOSE.
Market sentiment is buoyant, and the
country’s equity capital markets are some of the
best-performing globally this year. Further state-owned
enterprise privatisation is expected to spark more deals.
However, foreign investment restrictions in listed companies
mean that exchange-traded funds overseas...