This study employed Structural Equation Modeling (SEM) to investigate how behavioral factors impact the stock investment decisions of Generation Z in Vietnam. Analysis of 558 valid survey responses revealed that overconfidence, fear of missing out (FOMO), representativeness bias, and risk attitude significantly and positively influenced investment behavior. In contrast, framing effects and herding behavior did not show a significant relationship with investment decisions. Notably, FOMO—commonly examined in consumer behavior, shopping, and entertainment contexts—has been underexplored in investment-related research, positioning it as a novel contribution of this study.
Based on the findings, the authors offer recommendations to encourage more informed and stable investment practices among Vietnamese Gen Z investors. These include managing high-frequency and high-risk trading, maintaining emotional discipline, and adhering to strategic, analytical approaches to investing. Investors are advised to avoid reactive, psychologically-driven decisions. Additionally, it is recommended that personal finance and investment literacy be integrated into both general and higher education curricula. The study also emphasizes the need for oversight of misinformation in media and suggests that regulatory measures be enforced to hold securities firms accountable for any manipulation of investment-related information.
