Vingroup-led surge lifts the benchmark above a key psychological level, while global funds cite earnings momentum and an imminent market upgrade as catalysts for a multi-year bull cycle.
Vietnam’s stock market kicked off December with a decisive move: the VN-Index climbed nearly 11 points to 1,701.67, reclaiming the 1,700 threshold for the first time in more than a month. The breakout comes after a turbulent November and lands at a moment when global investors are reassessing emerging-market allocations amid cooling inflation and the prospect of lower U.S. interest rates.
The index stayed in the green from the opening bell, powered overwhelmingly by large-cap stocks — especially those tied to Vingroup, Vietnam’s largest private conglomerate. Liquidity, however, remained modest at 18.5 trillion VND, reflecting a cautious tone among domestic traders and a market still dependent on a narrow set of leaders.
VIC, the flagship Vingroup stock, was the day’s dominant driver, contributing 8.25 index points on its own. VPL and VHM, two additional Vingroup affiliates, added another 2.67 and 2.59 points respectively, with VPL hitting its ceiling price and VHM rising 2.7%. The rally was reinforced by strong performances in GEE and GAS, while other blue chips such as SAB, MSN, VNM, VRE, and SHB also provided upward momentum.
Not all sectors participated. KSV exerted the strongest downward drag, subtracting 1.54 points, and banks like TCB and CTG alongside HVN and GVR posted mild declines — though none were enough to offset the index’s overall surge.
Analysts say it is too early to declare the start of a new bull run given subdued liquidity, but the broad participation across sectors marks an encouraging shift after weeks of choppy, low-conviction trading. And optimism is building: in a recent outlook, Dragon Capital said Vietnam’s corporate earnings are on track for 21.3% growth in 2025 and 16.2% in 2026, with valuations still compelling at 12.5–13x forward P/E for 2025 — cheaper than many regional peers.
Longer term, Vietnam’s expected upgrade from frontier to emerging market status could unleash a wave of international capital, triggering a valuation re-rating and deepening liquidity. In a bold call, PYN Elite Fund manager Petri Deryng recently lifted his VN-Index target to 3,200 by 2028, assuming earnings growth of 18–20% annually and a supportive macro policy environment.
For now, investors will watch whether the VN-Index can hold above 1,700 — a level that has repeatedly acted as both a ceiling and a sentiment barometer. The next sessions will test whether Vietnam’s rally can broaden beyond Vingroup’s magnetic pull and evolve into a market-wide upswing.
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Source: Vietnam Insider