On July 28, the Vietnamese stock market reached a new historical peak when the VN-Index completely surpassed the old peak, reaching 1,557.42 points. Cash flow spread positively across the entire market, from large-cap stocks to mid- and small-cap stocks.
Speaking with Dau Tu Electronic Newspaper , Dr. Ho Sy Hoa - Director of Research and Investment Consulting, DNSE Securities JSC - predicted that the stock market still has a lot of positive room in the coming period.
This expert assessed that the Vietnamese stock market has made great strides and achieved many remarkable results over the past 25 years, promoting its role as an important medium- and long-term capital mobilization channel for the economy .
From the first trading session on July 28, 2000 with only 2 listed enterprises and market capitalization of less than 1% of GDP, the market now has more than 1,600 participating enterprises, with a capitalization scale reaching nearly 7.2 million billion VND in 2024, equivalent to about 70.4% of estimated GDP in 2023.
The VN-Index continuously reached new peaks, most recently 1,557.42 points on July 28, 2025, demonstrating positive sentiment spreading across the market, despite the context of new tariff policies from the US and global fluctuations. In addition, market liquidity has also improved significantly, and set many new records in terms of trading value and volume.
If in 2021, the average trading volume per session reached over 21 trillion VND, recently market liquidity has increased sharply with the average trading value per session reaching 34-35 trillion VND (~1.3 billion USD), an increase of more than 60% compared to the previous period, especially liquidity reaching over 46 trillion at the peak of 1,557.42 points.
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| Dr. Ho Sy Hoa - Director of Research and Investment Consulting, DNSE Securities JSC. |
“The index, liquidity, and capitalization have grown strongly, demonstrating the health and increasing depth of the market, as well as marking the tireless efforts of the Ministry of Finance and the State Securities Commission in upgrading the Vietnamese stock market from a frontier market to an emerging market,” said the Director of Research and Investment Consulting at DNSE.
Many forces support the stock market
Analyzing the strong growth momentum of the stock market, Dr. Ho Sy Hoa said that the above momentum is the result of the resonance of 4 influencing factors.
Firstly, Resolution 68 on private economic development was issued on May 4, 2025, creating more room for businesses to develop. This Resolution has created favorable conditions for domestic private businesses to have more room to develop, playing a leading role in the GDP growth target in the coming period, with a growth target of 10% or more.
The second is Vietnam’s tariff position in the negotiations with the US. Vietnam has risen to a strategic position by becoming the third negotiating country to reach an important agreement with the US, helping to strengthen the confidence of international investors. This is a remarkable achievement, especially in the context of the world economy, in which the US economy shows many signs of stagflation.
In this context, international investment flows tend to shift to emerging markets in Asia, including Vietnam. In particular, Vietnam, with its stable political system, changing mindset and growth model, clear market upgrade roadmap and reform policies being promoted, has contributed to strengthening the confidence of international investors.
Third, regarding the potential of the stock market being forecasted to be upgraded, according to the assessment of FTSE Russell and international organizations such as JP Morgan, the prospect of upgrading Vietnam from a frontier market to a secondary emerging market is opening up, with indirect capital flows from foreign investors expected to increase by 5-6 billion USD.
The upgrade is expected to stimulate passive and active investment flows to about USD 1-2 billion and USD 5-7 billion, respectively, helping to improve liquidity and capitalization of Vietnam's stock market.
Fourth, on the internal economy. The Vietnamese government targets double-digit GDP growth in the coming period, much higher than the 7.5% in the first 6 months of 2025. This is driven by the coordination of monetary policy to expand credit and fiscal policy through rapid and effective public investment disbursement.
At the same time, the high growth in state budget revenue and budget expenditure shows that the private sector is playing an increasingly important role in economic development as well as the stock market.
Notably, Vietnam's open-mindedness in innovating its GDP growth model is also demonstrated through the opening and development of new fields such as the digital asset market.
“With the above factors, I believe that Vietnam is creating a favorable and attractive environment for international investment capital flows and sustainable economic development, promising to create many positive spaces for the stock market in the coming period,” Mr. Hoa affirmed.
Ready with technology infrastructure to welcome the new growth period
To continue the growth momentum of the stock market, DNSE experts advise increasing the foreign ownership ratio as well as improving information technology infrastructure.
Mr. Hoa said that the KRX system coming into operation is expected to be a technical boost for the stock market. And to aim for the goal of upgrading and developing financial products to serve investors, securities companies need to upgrade their technology infrastructure, ensuring processing speed and low latency, in accordance with the criteria for T+0 transactions and short selling.
When the infrastructure fully meets these criteria, it will facilitate the deployment of high-frequency trading (HFT) support products, as well as system connectivity, serving the increasingly diverse and complex needs of professional investors.
In the long term, when the Vietnamese market is strong, this expert also mentioned the issue of capital account liberalization as a solution to promote foreign investment flows. On the positive side, capital account liberalization will contribute to unblocking foreign capital flows, contributing to promoting economic growth as well as the stock market.
However, this is also a challenging problem that requires the coordination of many ministries, departments and sectors because changes in policies related to capital balance will greatly affect the macro economy such as the foreign exchange market and balance of payments.
According to the IMF's recommendation, the prerequisite for successful capital account liberalization is "good supervision" by the regulatory agency, Dr. Ho Sy Hoa informed.
Source: https://baodautu.vn/nhan-dien-4-dong-luc-gia-tang-du-dia-tich-cuc-cho-thi-truong-chung-khoan-d343138.html
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