Billions of USD in foreign capital poured in, VN-Index up to 1,487 points, approaching historical peak

The VN-Index is only 40 points away from its old peak and foreign capital is still pouring into Vietnamese stocks. The stock market is expected to be upgraded soon and billions of dollars in capital flow is the new driving force.

VN-Index increased explosively, close to historical peak

On the morning of July 17, the Vietnamese stock market continued to increase strongly. By 10:10 a.m., the VN-Index had increased by nearly 12 points, to over 1,487 points, with expectations that foreign capital would continue to flow into the market. Along with that, a large amount of money from domestic investors was ready to pour into stocks.

In the previous session, July 16, the Vietnamese stock market had a spectacular breakthrough. The VN-Index increased by nearly 15 points (more than 1%) to over 1,475 points - the highest level in more than 3 years.

From the bottom when the market was affected by tariff information more than 3 months ago, VN-Index has increased by about 390 points and is only about 40 points away from the historical peak (1,528.57 points on January 6, 2022).

Previously, on July 15, the Vietnamese stock market recorded a correction session of nearly 10 points down to 1,460 points due to high profit-taking pressure after the VN-Index increased for 7 consecutive sessions. However, strong foreign buying activity, with more than 1,100 billion VND in the session, broke the VN-Index's increasing streak.

Financial, banking, real estate, and securities stocks continue to be attractive and are also the favorite groups of foreign investors. Cash flow from foreign investors is the driving force for the stock market after many years of net selling.

This is also a common trend in emerging markets (EM). Since July 2020, emerging markets have experienced a strong wave of net capital withdrawal. Vietnam is no exception to this trend, with a total net withdrawal amounting to billions of USD.

Upgrading the stock market is identified by the National Assembly , the Government and management agencies as a focus in 2025. Photo: NDT

Upgrading the stock market, adding new cash flow into Vietnamese stocks

At the workshop “Raising investor awareness towards upgrading the stock market” on the morning of July 17, Mr. Pham Duc Son, Editor-in-Chief of Investor Magazine, said that upgrading the stock market is identified as one of the strategic and key tasks in 2025 - a pivotal year to bring Vietnamese securities to the emerging market group.

With a scale equivalent to 55% of GDP, Mr. Phan Xuan Thuy, Deputy Head of the Central Propaganda and Mass Mobilization Commission, commented that the stock market is an important driving force for Vietnam to realize the GDP growth target of 8% in 2025 and at a "double-digit" level in the next period.

The position, role and positive impact of the stock market is to promote economic restructuring, accelerate equitization of state-owned enterprises, make business operations transparent, improve governance capacity and create conditions for businesses to reach regional and international levels.

According to Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission, the Vietnamese stock market has recently developed strongly in terms of scale, liquidity and quality of goods, gradually becoming an important medium and long-term capital channel for the economy. The average liquidity of the last 10 sessions as of July 16 in the market led the Southeast Asian region.

Ms. Phuong believes that upgrading the stock market (from frontier to emerging) is a highly effective solution to attract foreign investment.

Recently, the world financial market has undergone many changes. Foreign capital from large organizations has poured into emerging markets, including Vietnam. Even the banking giant JP Morgan has just recommended buying Vietnamese stocks even though the VN-Index has increased quite strongly in the past 3 months.

JP Morgan also believes that the probability of Vietnam being upgraded to an emerging market by FTSE in the September 2025 review is high. The upgrade could attract more than $500 million in passive capital into the market and improve investor sentiment.

In addition, the stock market is also attractive as the second quarter financial reporting season is approaching. Although there are no official figures yet, many forecasts show that key sectors such as banking, real estate, securities, retail, steel, etc. will achieve high growth from the second quarter until the end of the year. Low interest rate environment, increased public investment, and stimulation of domestic consumption are the main drivers of growth.

Many organizations predict that VN-Index may soon return to the peak of 1,500 points, or even surpass it this year. Mirae Asset Securities predicts that VN-Index will reach the historical mark of 1,550 points in the third quarter.

Billionaire Pham Nhat Vuong's assets have broken out again, the 200 billion USD floor is heading towards a historical peak . Vingroup shares (VIC), chaired by billionaire Pham Nhat Vuong, have increased to the ceiling price of over 100,000 VND while the VN-Index has been continuously rising to a new peak. Foreign investors are buying strongly. What is happening?

Source: https://vietnamnet.vn/ty-usd-von-ngoai-do-vao-vn-index-len-1-487-diem-ap-sat-dinh-lich-su-2422705.html