Investment funds bullish on Vietnam bank stocks amid stable macro outlook

With Vietnam’s macroeconomic environment showing signs of stability, bank stocks – a field often regarded as the “backbone” of the economy – have emerged as a top pick among investment funds.

Investment funds hold sizable bank stock proportions

Banking or financial stocks consistently make up a significant portion of most equity funds’ portfolios, according to disclosures on funds’ websites.

A survey by The Investor also revealed many funds with bank/financial sector holdings exceeding 40% of total assets, including the BaoViet Equity Dynamic Open-Ended Fund (BVFED), United Vietnam ESG Equity Fund (UVEEF), BaoViet Prospect Equity Open-Ended Fund (BVPF), Mirae Asset Vietnam Growth Equity Fund (MAGEFGE), VinaCapital Equity Opportunity Fund (VEOF), and Eastspring Investments Vietnam ESG Equity Fund (EVESG).

Funds with over 30% weight make up the majority, featuring names like Thanh Cong Growth Fund (TCGF), VCBF Tactical Balanced Fund (VCBF-TBF), DC Dividend Focus Equity Fund (DCDE), and VinaCapital Modern Economy Equity Fund (VMEEF).

The five stocks with largest portfolio proportions at equity funds are bank stocks, especially those in the VN30 Index which reflects the 30 largest blue chips on the Ho Chi Minh Stock Exchange (HoSE).

Specifically, TCB of Techcombank, STB of Sacombank, and CTG of Vietinbank rank among the top five holdings in the portfolio of DC Dynamic Securities Fund (DCDS) managed by Dragon Capital – a leading foreign-run asset management firm in Vietnam.

Similarly, Vietcombank Fund Management Company Limited (VCBF) – a joint venture between Vietcombank and U.S.-based Franklin Templeton Investments (FTI) – holds significant stakes in MBB of MBBank, STB, and CTG.

Lighthouse Capital (LHCDF) draws attention as its largest portfolio holding is Nam A Bank’s NAB (HoSE), a non-VN30 bank stock.

Huynh Hoang Phuong, an investment-finance expert, explained that in developing Asian economies, including Vietnam, economic growth heavily relies on bank capital, as capital markets are not yet developed well enough.

This dynamic positions the banking sector as the backbone of the economy, with growth closely tied to credit expansion and banking system…