“Financial Fomo” Under the Influence of Social Media: A Study of Young Investors in Vietnam

1. Introduction

The rapid advancement of digital technology and social media in recent years has fundamentally transformed the way investors access financial information. Previously, investment decisions were primarily based on financial statements, expert analyses, or information provided by formal financial institutions. Today, however, investors - particularly younger generations - are increasingly influenced by social media platforms such as TikTok, Facebook, YouTube, Instagram, and X (formerly Twitter). Content related to stock markets, cryptocurrencies, real estate, and rapid wealth-generation opportunities spreads at an unprecedented speed, creating significant psychological pressure on information consumers.

Within this digitalized environment, young people - especially Generation Z - have emerged as a new and increasingly active group of investors. This generation is highly adaptable to technology, spends substantial time on social media, and is more susceptible to community - driven trends. While social media offers opportunities for broader financial knowledge and easier access to investment information, it also exerts negative psychological effects on the investment behavior of young individuals. One of the most prominent phenomena in this context is “financial FOMO” (Fear of Missing Out in Finance), which refers to the fear of missing investment opportunities or profitable trends that others appear to be benefiting from.

Financial FOMO arises when investors are continuously exposed to online content portraying extraordinary profits, financial success, or affluent lifestyles. Images of substantial returns and widely shared success stories foster the perception that failing to invest immediately may result in being left behind financially. This invisible pressure often drives investors to make decisions based more on emotions than rational analysis, encouraging herd-following behavior rather than careful financial evaluation and risk management.

It is undeniable that social media has enabled many young people to access investment knowledge more conveniently. Nevertheless, the rapid dissemination of unverified financial content, combined with social competition and digital peer pressure, has increasingly emotionalized investment behavior. Investors are not only afraid of financial losses but also fear being “left behind” in the financial race within online communities. Consequently, speculative short-term investment behavior and unsustainable financial decisions have become more prevalent.

In this context, studying the financial FOMO effect under the influence of social media is of significant importance for identifying factors affecting young investors’ behavior and proposing solutions to improve the quality of personal financial decision - making in the digital era.

2. Theoretical framework and research methodology

2.1. Theoretical Framework

FOMO was initially examined extensively within psychology and digital communication studies. According to Przybylski et al. (2013), FOMO refers to a state of anxiety in which individuals perceive that others are experiencing rewarding opportunities from which they are absent. In social media environments, FOMO is intensified through continuous exposure to images of success, investment gains, and attractive financial lifestyles.

In behavioral finance, FOMO is considered a psychological bias influencing investment decision - making processes. Investors affected by FOMO tend to purchase assets based on crowd behavior, enter markets during periods of rapid price appreciation, and disregard fundamental analytical factors. This phenomenon is closely associated with Herding Theory, which suggests that individuals often follow the actions of the majority in order to reduce uncertainty and psychological discomfort in uncertain environments.

Furthermore, Prospect Theory developed by Kahneman and Tversky (1979) explains that individuals are often more strongly influenced by the fear of missing opportunities than by objective assessments of risk. Continuous exposure to others’ investment gains on social media may lead investors to develop the belief that failing to participate immediately will result in missed opportunities, thereby encouraging poorly considered investment decisions.

2.2. Research Methodology

This study employs a qualitative research approach combined with secondary data analysis to examine the relationship between social media and financial FOMO in the investment behavior of young people in Vietnam. The selection of a qualitative methodology is justified by the psychological and behavioral nature of financial FOMO, which is strongly shaped by emotions, personal perceptions, and the digital media environment. Therefore, this approach enables a deeper exploration of the factors influencing investment behavior rather than focusing solely on quantitative indicators.

The research data were primarily collected from highly reliable secondary sources, including international academic journals in behavioral finance, financial psychology, and digital communication; reports from international financial organizations; Vietnamese stock market data; securities company reports; and studies concerning social media usage behavior and investment trends among Generation Z. In addition, the study references practical reports on the development of financial social media platforms such as FinTok, YouTube Finance, and Facebook investment groups, as well as the rapid increase of first-time investors (F0 investors) in Vietnam following the COVID - 19 pandemic.

The study applies analytical and synthesis methods to systematize previous research findings and derive conclusions regarding the influence of social media on investment behavior. Comparative analysis is also employed to identify differences between investment decisions based on traditional financial analysis and those influenced by FOMO within digital environments.

The use of secondary data and qualitative methods allows the study to provide a multidimensional perspective on financial FOMO while reflecting the practical realities of Vietnam’s contemporary financial market.

3. The current situation of financial fomo under the influence of social media in Viet Nam

In recent years, Vietnam’s financial market has witnessed a significant increase in the number of individual investors, particularly among Generation Z and Millennials. The rapid development of digital technology and social media has substantially transformed the way young people access financial information and make investment decisions. Platforms such as TikTok, Facebook, YouTube, and X (formerly Twitter) have increasingly become major sources of financial information, facilitating the widespread emergence of the “financial FOMO” (Fear of Missing Out) phenomenon among young investors.

According to data from the Vietnam Securities Depository and Clearing Corporation (VSDC), by the end of 2024, Vietnam had more than 9.2 million individual securities trading accounts, equivalent to approximately 9% of the country’s population. In 2024 alone, the number of newly opened securities accounts increased by nearly 2 million, marking the second - highest annual growth rate in the history of the Vietnamese stock market. This indicates the growing participation of retail investors, particularly young individuals, in the financial market.

Alongside the rapid increase in investor participation, financial social media platforms have also experienced substantial growth. According to the “Gen Z Annual Report 2024” published by Z-Lab, Vietnamese Gen Z users currently engage with an average of three social media platforms per day, with approximately 20% spending between four and ten hours online daily. Notably, TikTok has become one of the most influential platforms among young Vietnamese users. A report by Decision Lab, cited by the Investment Newspaper, revealed that approximately 22% of Gen Z users regularly use TikTok, surpassing YouTube (15%) and ranking second only to Facebook (40%).

Within this digital environment, content related to stock investment, cryptocurrencies, real estate, and “quick wealth-building strategies” appears with increasing frequency. Numerous “finfluencers” (financial influencers) frequently share images of substantial profits, luxurious lifestyles, or stories of rapid financial success achieved through investment activities. Content such as “doubling your investment account,” “earning hundreds of millions of VND within days,” or “investing to change your life” often attracts exceptionally high levels of engagement on social media platforms. Consequently, such content creates considerable psychological pressure on young investors, leading to anxiety about missing profitable opportunities.

According to a report by PYMNTS Intelligence cited by Tuoi Tre Newspaper in 2024, approximately 79% of Generation Y and Generation Z consumers expressed interest in financial education content recommended through social media algorithms. This reflects the increasing dependence of young people on social media as a primary source of financial information and investment guidance.

In practice, financial FOMO tends to intensify during periods of rapid market growth. When stock prices or digital assets continuously increase and are frequently discussed across online communities, many young investors are inclined to enter the market without conducting adequate financial analysis. Investment decisions are often driven more by herd mentality, emotions, and social pressure than by fundamental factors such as corporate performance, risk management, or long - term investment strategies.

Furthermore, the algorithms of social media platforms also contribute significantly to amplifying the FOMO effect. Digital platforms generally prioritize content that generates strong emotional reactions and high engagement levels. As a result, videos and articles related to “huge profits,” “rare investment opportunities,” or “successful profit - taking” tend to spread much more rapidly than in-depth financial analyses. Continuous exposure to such content may create a strong sense of urgency among investors, leading them to believe that failing to invest immediately would result in missed profit opportunities.

In addition, the rapid dissemination of unverified financial information on social media has become increasingly widespread. Numerous investment groups on Facebook, Telegram, and TikTok regularly provide “investment recommendations” lacking professional analytical foundations or even showing signs of psychological manipulation. According to reports published by the People’s Public Security Newspaper, many unofficial online stock investment groups have exploited investors’ FOMO psychology to encourage participation in highly speculative and risky investment activities.

Financial FOMO not only affects investment decisions but also exerts negative impacts on the psychological well-being and personal financial behavior of young individuals. Many investors frequently experience stress, anxiety, or regret after missing investment opportunities promoted on social media. Some individuals continuously monitor asset prices, engage in excessive trading activities, or utilize financial leverage in pursuit of rapid profits, thereby increasing the risk of personal financial instability and investment losses.

Overall, the current situation of financial FOMO in Vietnam reflects the increasingly powerful influence of social media on the investment behavior of young people. In the context of the rapid growth of retail investors and the expansion of digital communication platforms, financial FOMO is no longer merely an isolated psychological phenomenon but has become a defining characteristic of modern investment behavior. This reality highlights the urgent need to improve financial literacy, strengthen emotional control in investment activities, and enhance the regulation and quality of financial information within digital environments.

4. Solutions to mitigate the financial fomo effect

As social media continues to exert a profound influence on individual investment behavior, mitigating the negative impacts of financial FOMO is not only an issue for investors themselves but also a matter directly related to the stability and sustainable development of financial markets. Addressing this phenomenon requires coordinated efforts among government regulators, financial institutions, digital media platforms, and investors.

First, improving financial education among young people is essential for building sustainable financial knowledge and strengthening emotional control in investment activities. In reality, many young Vietnamese investors enter financial markets at an early stage without adequate knowledge of risk management, financial analysis, or long - term investment strategies. Meanwhile, social media creates highly emotional investment environments in which financial decisions are often influenced more by community trends than by professional analysis. Therefore, financial education should not be limited to basic investment concepts but should also emphasize behavioral finance, investment psychology, and emotional management skills.

In addition, it is necessary to enhance investors’ ability to identify and evaluate financial information within digital environments. In the digital era, investors face not only market risks but also information-related risks. Social media platforms tend to prioritize content capable of generating strong emotional reactions and high engagement levels. Consequently, videos or articles promoting “quick profits,” “life-changing opportunities,” or “investment secrets” spread more rapidly than in - depth financial analyses. Investors must therefore develop the ability to verify information sources, assess the reliability of investment recommendations, and recognize psychologically manipulative content. Without adequate information - filtering skills, investors can easily become trapped in speculative investment waves driven by collective sentiment.

From a regulatory perspective, it is essential to strengthen the legal framework governing financial communication activities on digital platforms. Many forms of financial content that excessively promote investment opportunities, stimulate FOMO psychology, or even exhibit signs of investor manipulation remain insufficiently regulated. Regulatory authorities should establish stricter monitoring mechanisms for investment-related information shared on social media, particularly content involving financial recommendations. At the same time, legal responsibilities should be clearly defined for individuals or organizations disseminating misleading information, causing misunderstandings, or encouraging speculative behavior. Enhancing transparency in financial information dissemination would significantly reduce psychological manipulation within digital investment environments.

Another important solution involves promoting a long - term and value - based investment culture. One of the main reasons for the rapid growth of financial FOMO is that many investors focus excessively on short-term profits and are attracted to speculative opportunities. As stories of “rapid wealth accumulation” continue to circulate widely, investors become more likely to compare their financial achievements with others and follow community - driven trends. To mitigate this tendency, it is necessary to encourage sustainable investment thinking, emphasizing the importance of long-term financial strategies and personal asset management. Investors must understand that investing is not a short - term competition for immediate gains, but rather a disciplined process of wealth accumulation based on sound financial planning and effective risk control.

In addition to educational and regulatory measures, investors themselves must proactively develop “psychological resilience” against pressures generated by social media. Continuous exposure to images of others’ financial success may easily create feelings of insecurity or fear of being left behind. However, each individual possesses different financial conditions, risk tolerance levels, and investment objectives. Comparing oneself to the financial success portrayed on social media can lead to investment decisions that are inconsistent with one’s actual financial capacity.

Therefore, investors should establish clear financial plans, define investment objectives aligned with their financial capabilities, and maintain long-term investment discipline. More importantly, they need to develop the ability to control emotions during market fluctuations and avoid making decisions solely because of psychological pressure from online communities.

In the long run, mitigating the effects of financial FOMO will not only protect individual investors but also contribute to building a more transparent, stable, and sustainable financial market. When investors possess stronger financial literacy, better emotional control, and greater access to transparent information, financial markets will become less vulnerable to emotionally driven speculation and more oriented toward healthy long-term development in the digital era.

5. Conclusion and policy implications

Financial FOMO under the influence of social media has become a defining characteristic of modern investment behavior, particularly among young investors in Vietnam. The rapid development of digital platforms has not only transformed access to financial information but has also amplified psychological factors such as fear of missing opportunities, social pressure, and herd behavior.

This study demonstrates that financial FOMO can lead to irrational investment decisions, increased financial risks, and negative psychological consequences for young investors. In this context, improving financial literacy, strengthening information control on social media, and developing emotional management skills in investing are essential for fostering a healthier investment environment.

From a policy perspective, Vietnam should promote digital financial education, strengthen oversight mechanisms for financial content on social media platforms, and enhance the accountability of financial communication actors. At the same time, policymakers should encourage the development of a long - term, value - based investment culture in order to reduce the adverse impacts of FOMO within modern financial markets.