Vietnam’s VN-Index smashes record as stock market turns 25
The benchmark index has outperformed regional peers with its 23% rally so far this year
[HO CHI MINH CITY] Vietnam’s benchmark stock index hit a record high as investors grew bullish, with the better clarity surrounding the trade deal with the US and improved macroeconomic backdrop supporting the country’s economic growth prospects this year.
On Monday (Jul 28), the 25th anniversary of the Vietnamese stock exchange, the Vietnam Ho Chi Minh Stock Index (VN-Index) closed at 1,557.42, up 1.72 per cent. Lender VPBank and real estate developer Vinhomes were among the top contributors to the gains.
This marks an all-time high for the benchmark VN-Index, surpassing its previous peak in early 2022. The milestone comes after six straight weeks of gains, highlighting sustained bullish sentiment in the market.
“The market may continue its upward momentum, supported by low valuations, strong sentiment and solid fundamentals,” Petri Deryng, portfolio manager of PYN Elite Fund, wrote in a note on Jul 25.
Deryng suggested that forecasts of the VN-Index reaching 1,800 points by Christmas could be plausible, though he cautioned that sharp pullbacks may occur due to profit-taking by local investors.
The Vietnamese index has rallied by 23 per cent this year, well ahead of Asean peers. It has also rebounded by 42 per cent from the low on Apr 9, after US President Donald Trump announced his so-called “Liberation Day” tariffs.
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Vietnam’s equities have maintained an upward momentum since early July, when a new trade agreement was announced that imposes a 20 per cent tariff on imports from Vietnam – substantially lower than the 46 per cent initially proposed.
Although the details of the agreement are yet to be finalised, expectations are growing that global investors will further increase their exposure to Vietnamese equities.
On Jul 9, JPMorgan Chase upgraded Vietnam to “overweight” within Asean, reflecting a bullish outlook that the country’s stock market will outperform its regional peers.
Foreign investors have bought 9.4 trillion dong (S$460.8 million) of Vietnamese shares on a net basis so far in July, the second month of inflows this year.
However, cumulative net buying remains negative, with 31.8 trillion dong withdrawn from local stocks in the year to date, following a net sale of 92.5 trillion dong last year.
Rising optimism over a potential FTSE upgrade for Vietnam to emerging-market status this September, and a structural shift fuelled by pro-growth reforms are also contributing to the rally of local stocks, noted market watchers.
Industrial heavyweight Gelex Group, conglomerate Vingroup, broker VNDirect Securities, and Vietnam Construction and Import-Export are among the top performers on the index this year, as investors bet on key beneficiaries of the country’s strong growth.
Despite external challenges, Vietnam’s economic expansion accelerated to nearly 8 per cent year on year in the second quarter of 2025, with a major contribution from robust public spending and investment disbursement.
The government is aiming for 8.3 to 8.5 per cent gross domestic product growth for the full year, from 7.1 per cent in 2024, creating a foundation for double-digit rates in the 2026-2030 period.
Speaking at an event to mark the bourse’s anniversary, Don Lam, co-founding partner and chief executive at VinaCapital Investment Management, said Vietnam’s stock market should focus on several key objectives over the next five years.
These include securing an upgrade to emerging status, enhancing financial literacy, encouraging the participation of institutional investors, and modernising trading infrastructure.
“Promoting domestic institutional investors is a key factor for sustainable market development, as they play a crucial role in the creation and roll-out of new financial products such as pension funds,” he added, noting that retail investors currently account for 85 per cent of the bourse’s daily trading volumes.
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