Stock Market: Korean retail investors pile into ETF tracking Vietnam's VN30
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.
