Relationship between push and pull factors and foreign portfolio investment in Vietnam

By Lâm Nguyễn Đỗ Khoa, VNP-29

Supervisor: Dr. Vũ Việt Quảng

Abstract:

This study explores the factors influencing Foreign Portfolio Investment (FPI) in Vietnam’s stock market, focusing on the interaction between macroeconomic factors and global financial conditions framed within the push-pull theory. Using monthly data from 2009 to 2024, the research applies the Nonlinear Autoregressive Distributed Lag model to examine short- and long-term relationships, considering asymmetric effects on FPI. The results show that global economic conditions significantly drive FPI inflows, while the domestic factors have mixed effects. The study also highlights short-term impacts, such as those from the COVID-19 pandemic and ETF restructuring. These findings provide useful insights for policymakers and investors and contributes to the literature by examining the asymmetric effects of
economic variables on FPI, offering a solid framework for analyzing financial markets in emerging economies