Vietnam stock market towards sustainable growth cycle

The successful operation of the KRX system promises to increase transaction frequency, help the market diversify investment tools and attract capital flows.

According to Mr. Nguyen The Minh, Director of Research and Development, Yuanta Vietnam Securities Company, a stable macro foundation with a sustainable economic growth orientation is a key factor helping the Vietnamese stock market enter a new growth cycle. The government aims to maintain a high growth rate and aim for a double-digit growth strategy after 2025.

At the same time, institutional reforms were promoted, with a series of laws and decrees being amended, creating a more open legal corridor for the private sector and financial markets. These reforms helped improve operational efficiency and increase investor appeal.

The operation of the new KRX trading system from the beginning of May 2025 marks a new development step for the Vietnamese stock market. This system is not only a technical milestone but also a strategic step, helping Vietnam improve the quality of market infrastructure, towards international standards and meeting the conditions for upgrading in 2025.

Mr. Truong Hien Phuong, Senior Director, KIS Vietnam Securities Joint Stock Company, said that the stable operation of the KRX System brings a new breeze to the Vietnamese stock market, while creating favorable conditions for upgrading the market and attracting long-term investment capital.

According to VNDIRECT's report, the market's trailing P/E is 12.9x, a 22% discount from the 10-year average. The projected P/E of VN-Index in 2025 is in the range of 10.5-11x, based on the forecast of EPS growth in 2025 at 12-17% for listed companies. The P/E valuation of VN-Index is attractive, opening up opportunities for long-term investors to accumulate stocks.

Currently, Vietnam's economy still has many bright spots such as low interest rates, the Government promoting economic growth from the pillar of public investment and attractive stock market valuation. These will be positive supporting factors for the stock market.

According to FiinTrade data as of May 9, 2025, in the first quarter of 2025, after-tax profit increased by 11.8% over the same period, with strong growth in sectors such as Media (+14,361.4%), Retail (+74.5%), Real Estate (+59.3%), Utilities (+48.9%), Chemicals (+37.5%), Information Technology (+21.1%), Basic Resources (+19.8%), Insurance (+18.1%), Banking (+15.3%). These figures show that the overall market profit picture is still positive, creating a foundation for the growth of the VN-Index in 2025.

The FTSE’s upgrade to Secondary Emerging Market status for Vietnam’s stock market could trigger a re-pricing, lifting the P/E out of its current low range. Triggers such as successful tariff negotiations or the upgrade of Vietnam’s stock market could attract foreign capital, creating momentum for sustainable stock market growth.

Mr. Han Huu Hau - analyst of VPS Securities Company emphasized that the second quarter of 2025 and May are favorable times for positive information on economic growth, orders, and progress in the negotiation process. The implementation of the KRX system also promotes the completion of FTSE's upgrading criteria, with the earliest upgrade possible in September 2025, attracting an attractive cash flow.

With a stable macro foundation, growth-supporting policies, improved market infrastructure and attractive market valuations, the Vietnamese stock market is meeting all the conditions to enter a new growth cycle. Long-term investors can see this as an opportunity to accumulate stocks, especially stocks with solid financial foundations and future growth potential.

Source: https://thoibaonganhang.vn/chung-khoan-viet-nam-huong-toi-chu-ky-tang-truong-ben-vung-164033.html