In a week marked by hefty investment moves and bold expansion plans, Vietnam’s financial and manufacturing landscapes are abuzz with activity. On one front, the American investment fund VanEck Vietnam ETF (VNM ETF) has dramatically reshuffled its portfolio, making significant trades that sent ripples through the country’s stock market. On another, LG Innotek Vietnam (LGITVH) is gearing up for a new phase of growth, using a major loan from the International Finance Corporation (IFC) to supercharge its manufacturing capabilities and help Vietnam climb further up the global electronics value chain.
From September 15 to September 22, 2025, VNM ETF engaged in a flurry of buying and selling, driven by the quarterly review of the MarketVector Vietnam Local Index, which took effect on September 19, 2025. According to nguoiquansat.vn, the fund’s actions were decisive: it offloaded large volumes of several stocks, including over 6.6 million shares of SHB, 4.9 million of VIX, 4.6 million of SSI, nearly 3.4 million of NVL, and more than 2.8 million of HUT. TCH and VND each saw over 2 million shares sold. These stocks, as predicted by MarketVector, faced the brunt of the selling pressure.
Yet, the fund wasn’t just selling. Its buying spree focused on new additions to its portfolio, with HVN leading the charge—nearly 8 million shares snapped up. FPT and STB each saw more than 3.4 million shares purchased, while GEE and MSN followed with over 1.3 million and nearly 5.5 million shares, respectively. By September 22, the VNM ETF’s total assets stood at nearly $575 million, down from $600 million a week earlier. The portfolio now spans 51 stock codes and one fund certificate, with the biggest allocations going to VIC (9.14%), VHM (7.84%), MSN (7.08%), HPG (6.41%), and VIX (5.59%).
This flurry of trading is set against a backdrop of shifting international capital flows. FiinTrade data reveals that from September 15 to 19, 2025, ETFs investing in Vietnam’s stock market saw net withdrawals exceeding 376 billion VND—a 41.9% drop from the previous week. The outflow was widespread, hitting 10 out of 20 funds, with foreign investors accounting for nearly 265 billion VND. The Fubon FTSE Vietnam ETF, in particular, led withdrawals with a net outflow of 314.7 billion VND, while the Global X MSCI Vietnam ETF bucked the trend, attracting a net inflow of nearly 48 billion VND.
Domestic funds weren’t immune to the trend. They experienced net selling pressure of more than 111 billion VND, with the VFM VN30 ETF alone seeing withdrawals of 82.4 billion VND. The MAFM VN30 ETF and VFM VNDiamond ETF followed with outflows of over 20 billion VND and 16 billion VND, respectively. There were some bright spots, though: the SSIAM VNFIN LEAD ETF managed a net inflow of almost 10 billion VND.
Thai investors also took part in the action, selling 2.3 million shares of the E1VFVN3001 fund (VFM VN30 ETF), equivalent to 76.6 billion VND, and 1.2 million shares of the FUEVFVND01 fund (VFM VNDiamond ETF), worth 47.3 billion VND. By September 2025, total ETF net outflows had reached nearly 1,700 billion VND for the month, raising the year-to-date figure to 14,100 billion VND—still below the 21,800 billion VND withdrawn during the whole of 2024. Despite these outflows, the total net asset value of ETFs invested in Vietnam hit 64,100 billion VND by September 19, a 12.8% rise compared to the end of 2024.
While capital flows ebb and surge, Vietnam’s manufacturing sector is preparing for a leap forward. As of September 24, 2025, LG Innotek Vietnam operates two factories in Hai Phong employing more than 5,000 people. Now, with a major loan from the IFC, the company plans to build a third factory to ramp up production of camera modules for smartphones. The goal? To transform LGITVH’s facilities into a comprehensive manufacturing complex, deepen collaboration with domestic suppliers to meet global standards, and foster a highly skilled workforce.
The timing couldn’t be more crucial. Vietnam’s electronics sector already accounts for about 40% of total export turnover and provides jobs for over 900,000 workers. Yet, it faces persistent challenges: heavy reliance on imported components, a focus on final assembly, and limited domestic value-added. The new investment aims to diversify product portfolios, localize input materials, and introduce more complex production processes—key strategies to boost competitiveness and reduce vulnerabilities.
The IFC loan is tied to sustainability targets, supporting LG Innotek’s ambitions to cut greenhouse gas emissions in line with its own roadmap. The company is aiming for all its factories to use 100% renewable electricity by 2030 and to achieve carbon neutrality by 2040. IFC is also providing technical support to help LGITVH build and implement a robust framework for sustainable development.
Ji-hwan Park, Chief Financial Officer and Senior Vice President of LG Innotek, emphasized the significance of the partnership, stating, “The loan from IFC will significantly enhance LG Innotek’s global competitiveness, while also boosting LGITVH’s production capacity and product quality.” Park also noted that by leveraging IFC’s global network and expertise, LG Innotek aims to expand manufacturing capacity in line with ESG standards and strengthen its position in international markets. The project is expected to create new jobs, both directly and indirectly, across LGITVH’s entire value chain—including logistics, transport, packaging, and related sectors.
Carsten Mueller, IFC’s Regional Director for Industry, Agribusiness, and Services in Asia-Pacific, highlighted the broader significance, saying, “This investment will drive economic growth, create more high-skilled jobs, and increase value-added and complexity in electronics manufacturing, thereby strengthening the industry’s position in the global market.” Mueller also pointed out that innovative financing tools like sustainability-linked loans (SLLs) are crucial for supporting sustainable development and helping Vietnam respond to the challenges of climate change.
The partnership between IFC and LG Group has deep roots, stretching back to the 1970s when IFC first invested in LG Electronics Inc. (then known as Goldstar) at a time when South Korea was still an aid recipient. Since then, IFC has collaborated with various LG Group entities on projects in emerging markets around the world. Now, this latest investment aims to create a ripple effect—attracting more investors and manufacturers, encouraging greener supply chains, and building a highly skilled workforce that could turn Vietnam into a hub for sustainable, high-value manufacturing.
With capital markets in flux and manufacturers doubling down on sustainability and innovation, Vietnam finds itself at a crossroads. The moves by VNM ETF and LG Innotek Vietnam signal not just shifting strategies but also the country’s growing significance as a destination for both global finance and advanced manufacturing.
