As investors' interest in the Vietnamese stock market, which rebounded significantly recently, increased, the firms managing Vietnamese funds are making efforts to boost their revenue. The Vietnamese stock market, which saw a sharp decline due to the shock of U.S. tariffs, had a significant rebound since April; however, domestic Vietnamese funds lagged behind the index's rise, showing poor revenue.
The firms managing Vietnamese funds have been actively including VinGroup, the largest corporation in Vietnam, which they had previously overlooked, in their portfolios, indicating a recovery in their revenue.
According to the Ho Chi Minh Stock Exchange on the 2nd, the Ho Chi Minh VN Index closed at 1,502.52, rising 9.19% from 1,376.07 during the month from July 1 to 31. Compared to the KOSPI's 5.56% increase during the same period, the rebound of the Vietnamese stock market was very strong.
Thanks to this, the revenue of Vietnamese funds is also recovering. Fund products that invest in Vietnamese stocks, such as Korea Investment Vietnam Growth Securities Trust and KB Star Vietnam VN30 Index, recorded revenue of 8% to 10% over the past month. In addition, most Vietnamese fund products are showing respectable revenue levels equivalent to the VN Index.
However, until the first half of this year, the mood was very different. The VN Index recorded its lowest point of the year in April and showed an increase of nearly 30%; during this period, the revenue of most Vietnamese investment products struggled to keep up with the index's rise. Although the index rose about 10% compared to the beginning of the year, several funds reported losses.
The decline in the revenue of Vietnamese funds was due to the 'absence' of VinGroup. VinGroup, the parent group of VinFast, is the largest corporation in Vietnam, engaged in real estate development and distribution, but until now, fund managers have rarely included VinGroup in their portfolios.
An asset management industry official noted, "Until recently, most Vietnamese funds focused on growth stocks and financial stocks, thus structurally excluding real estate-centered corporations like VinGroup from their portfolios," adding, "They are now hastily moving toward rebalancing."
VinGroup is the largest corporation in Vietnam, venturing into various fields such as real estate, distribution, healthcare, and automobiles. It also has a significant influence on the Vietnamese stock market, with VinGroup's market capitalization accounting for 20% of the Vietnamese market. VinGroup's shares surged from about 40,000 dong (about 2,140 won) at the beginning of this year to 100,000 dong (about 5,350 won) by the end of last month, reflecting an increase of around 150%. VinGroup's subsidiaries also displayed nearly 100% increases, driving up the Vietnamese index.
Another asset management industry official said, "Until now, foreigners have tended to value large banks and IT sectors highly in the Vietnamese market, showing relatively little interest in VinGroup; however, following the tariff negotiations between Vietnam and the U.S., the market landscape changed, leading to a sharp rise in VinGroup's stock prices and driving the stock market."
Although it's late, domestic managers are focusing on including VinGroup-related stocks in their fund portfolios.
Korea Investment Vietnam Growth Securities Trust has seen a significant rise in revenue after adding VinHome, Vincom, and other VinGroup-related stocks to its portfolio. Its revenue over the past six months remained at 0.97%, which is far below the benchmark (12.85%); however, with the recent increases in shares of Vincom and VinHome to 6.85% and 5.88%, respectively, its revenue is improving. The revenue for the past month is at 7.98%, slightly below the benchmark of 8.53%.
The KB Star Vietnam VN30 Index, which performed relatively well in the first half of the year, currently shows a six-month revenue of 15.82%, closely tracking the benchmark (16.67%). A spokesperson from KB Asset Management stated, "At the beginning of the year, the investment proportion for VinGroup was small, but after the rebalancing in April, we are aligning our stocks and sectors to closely follow the benchmark strategy."
In addition, most asset management firms, including Samsung Asset Management, Hana Asset Management, and KCGI Asset Management, are increasing the stock proportions of VinGroup and its affiliates in their Vietnamese funds.
An asset management industry official stated, "Considering the Vietnamese stock market situation in the first half of the year, many funds are restructuring their portfolios through rebalancing, thus improving their revenue, and as the dynamics in emerging markets are changing rapidly, the speed of response to market conditions appears to be determining the revenue."