Vietnam’s stock market is showing strong bullish momentum, with the VN-Index holding firmly above the 1,300-point level, improved liquidity, and growing investor confidence.
Since surpassing 1,300 points on February 24, the index has maintained this key psychological threshold for 13 consecutive sessions, accumulating nearly 38 points (+2.9%). Market liquidity has also improved significantly, with eight consecutive trading sessions exceeding VND 20 trillion ($800 million) in transaction value.
While the VN-Index briefly wavered due to global market volatility, particularly sharp declines in U.S. stocks, key sectors such as banking, real estate, and securities provided support, preventing a significant pullback.
Vietnam’s Stock Market Outperforms Regional Peers
Since the start of 2024, the VN-Index has climbed nearly 68 points (+5%), outperforming major regional markets, including Malaysia, Shanghai (China), Singapore, and South Korea, according to Dragon Viet Securities (VDSC).
In an exclusive interview with Vietnam Insider, Mr. Duong Ngoc Dung, a seasoned investor with nearly 20 years of experience in both Vietnam and international stock markets, highlighted that the current uptrend began in late 2024.
“The market initially showed signs of an uptrend at the end of last year, and in 2025, we are witnessing an accumulation phase, with fluctuations mainly around 1,200-1,300 points. Now that the index has firmly surpassed 1,300, we can confirm that a new growth cycle is unfolding, offering substantial upside potential,” he stated.
Retail Investors Drive Market Growth
A key driver of the uptrend has been the strong buying power from domestic individual investors, who recorded a net buying volume of over VND 9 trillion ($360 million) on HoSE in February.
The surge in market participation is evident, with newly opened accounts nearly doubling in February compared to January, bringing the total number of domestic retail investor accounts to 9.48 million—equivalent to 9.4% of Vietnam’s population.
This surge reflects growing investor confidence, supported by the government’s flexible and proactive market policies, creating a solid foundation for long-term growth.
Market Upgrades and Economic Stimulus to Fuel Further Gains
Several upcoming developments are expected to further strengthen Vietnam’s stock market:
- FTSE Russell market upgrade prospects – A potential reclassification of Vietnam’s stock market could attract large foreign institutional investments.
- KRX Trading System – The launch of the Korea Exchange (KRX)-powered system will enhance market transparency, efficiency, and order processing speed.
- Government stimulus and public investment – Policies to support private enterprises and boost infrastructure spending will provide a strong foundation for corporate earnings growth.
Strategic Investment Outlook
Looking ahead, Mr. Dung advises investors to take advantage of market consolidations to accumulate quality stocks with clear growth potential rather than chasing speculative stocks that have surged too high.
“Mid-cap stocks are presenting great opportunities during periods of market consolidation. Investors should focus on companies with strong fundamentals and clear growth trajectories instead of speculative stocks, which may face sharp corrections,” he noted.
With liquidity improving, investor participation rising, and strong economic tailwinds, Vietnam’s stock market appears well-positioned for a sustained uptrend in 2025 and beyond.
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Source: Vietnam Insider