Vietnamese shares declined on Wednesday, dragged by market heavyweights as selling pressure increased significantly towards the closing minutes of trading.

Even though foreign investors have become net sellers on the stock market, they have fled to bonds and are waiting for future investment opportunities, said Tran Van Dung, Chairman of the State Securities Commission of Viet Nam (SSC).

The active domestic market with high liquidity, mostly from local retail investors, has been supporting securities firms this year with many reporting outstanding performance.

Shares cut early gains to end Tuesday on a negative note as strong selling force pushed down a handful of large-cap stocks, pressuring indices.

Banking stocks are currently not receiving the perceived response, despite the great expectation of investors. One needs to analyse the many reasons for the group of banking stocks to lose their dominant position in the stock market.

Shares inched higher on Monday morning, backed by energy, bank and manufacturing stocks.

Even though the VN-Index has not yet surpassed the psychological level of 1,400 points, the market was still considered positive last week. The uptrend reappeared in many stock groups, with increases in liquidity.

The market finished mixed in the last trading session of the week, with the VN-Index once again failing to breach the 1,400-point level.

The market inched higher on Friday morning as large-cap stocks rose.

The bad debt trading floor of Vietnam Asset Management Company (VAMC) is set to begin operation on October 15.