Vietnamese Stock Market Recovers and Grows: Key Factors Explored
Stock market index in Vietnam edges toward record high
The Vietnamese stock market, as represented by the VN-Index and VN30-Index, has experienced a remarkable recovery and growth in recent times. While specific details about "Thursday" are not provided, the broader context and catalysts driving these gains are outlined below.
Domestic Economic Strength and Policy Support
- Robust Macroeconomic Fundamentals: Vietnam's economy has demonstrated resilience, with GDP growth reaching 7.96% in Q2 2025, bolstering investor confidence and stock market performance.
- Domestic Stimulus Policies: Ongoing economic stimulus measures and institutional reforms have boosted market sentiment, supporting a sustained rally in the second half of 2025.
- Corporate Earnings: Many Vietnamese companies, including major index constituents, have reported robust earnings growth, keeping forward valuations attractive and drawing both domestic and foreign investment.
- Market Liquidity and Sector Rotation: High market liquidity and a notable divergence in sector performance have created new opportunities, with certain groups of stocks, such as blue chips like Vinamilk, Vietjet Aviation, and HDBank, entering new growth cycles.
International Catalysts and Foreign Investor Activity
- U.S.-Vietnam Tariff Negotiations: The resolution of trade talks with the United States in early July 2025 has eased external uncertainties and restored investor confidence, directly contributing to the market's upward momentum.
- FTSE Emerging Market Inclusion Prospects: Expectations that Vietnam may be promoted to the FTSE Emerging Markets index have further fueled optimism, potentially triggering significant passive and active fund inflows.
- Foreign Investor Participation: Foreign investors have recently been net buyers, injecting substantial capital into the market, particularly into sectors like real estate and oil & gas, but also likely benefiting large-cap stocks in the VN30.
- Technical Market Improvements: The introduction of the Korea Exchange (KRX) system has streamlined settlement and foreign investor access, enhancing the market's appeal to international capital.
Sector-Specific Drivers
- Real Estate and Oil & Gas Sectors: While the search results highlight strong gains in real estate (e.g., ITC, NLG, TN1) and oil & gas stocks (e.g., BSR, GAS), blue-chip companies like Vinamilk, Vietjet Aviation, and HDBank—as leading constituents of the VN30—would also benefit from improved liquidity, foreign inflows, and sector rotation.
- Earnings Momentum: Companies with strong quarterly results and growth prospects, such as those in consumer goods (Vinamilk), aviation (Vietjet), and banking (HDBank), are likely to see outsized gains as investor focus shifts to quality and resilience.
The following table summarizes the major contributing factors:
| Factor | Impact on VN-Index/VN30-Index | Relevance to Vinamilk, Vietjet, HDBank | |-----------------------------------------|----------------------------------------------|-------------------------------------------------| | Robust GDP growth & macro stability | Builds long-term investor confidence | Supports earnings and valuation | | Domestic policy stimulus | Fuels liquidity and sector rotation | Benefits blue-chip, high-growth firms | | Corporate earnings resilience | Attracts domestic & foreign capital | Directly lifts share prices | | U.S.-Vietnam trade resolution | Reduces external risk, boosts sentiment | Lowers systemic risk for exporters, banks | | FTSE inclusion expectations | Prompts foreign inflows | Increases visibility and liquidity | | Foreign investor net buying | Drives short-term rallies | Large-caps favored by international funds | | KRX system enhancements | Improves market infrastructure | Eases foreign participation |
In conclusion, the recent recovery and growth of the Vietnamese stock market are the result of strong domestic fundamentals, proactive policy support, resilient corporate earnings, the resolution of key international trade uncertainties, and heightened expectations for global index inclusion. These factors have collectively driven liquidity, foreign investment, and sector-specific rallies, benefiting prominent stocks like Vinamilk, Vietjet Aviation, and HDBank as part of a broader market uptrend.
- The resolution of trade talks with the United States and expectations of Vietnam's inclusion in the FTSE Emerging Markets index have boosted investor confidence, potentially attracting more foreign investment into Vietnamese stocks, such as Vinamilk, Vietjet Aviation, and HDBank.
- The Korean Exchange (KRX) system, which has streamlined settlement and foreign investor access, has enhanced the Vietnamese stock market's appeal to international capital, thereby benefiting stocks like Vinamilk, Vietjet Aviation, and HDBank.
- The robust earnings growth of Vietnamese companies, including Vinamilk, Vietjet Aviation, and HDBank, have kept forward valuations attractive, drawing both domestic and foreign investment in the stock market.
- The second half of 2025 saw a sustained rally in the Vietnamese stock market, with the upsurge in blue-chip stocks like Vinamilk, Vietjet Aviation, and HDBank largely due to high market liquidity, sector rotation, and foreign inflows.
