Boasts outstanding prospects for growth in Vietnam
Vietnam's stock market is experiencing a surge in growth and foreign investment, making it one of the most promising markets in Southeast Asia for 2025.
In July 2022, the number of stock market accounts in Vietnam increased by 226,300, marking the highest increase in a year and nearly 1.2 million since the start of 2025. This growth is a testament to the increasing interest in the Vietnamese market.
The Vietnamese stock market celebrated its 25th anniversary on July 28, 2022, in Ho Chi Minh City. The occasion was marked by a ceremony commemorating the robust development of the market over the past quarter-century. The event also saw the launch of a new IT system designed to underpin the market's next stage of growth.
Foreign investors net bought over $340 million across the Vietnamese stock market in July 2022, focusing on banking, real estate, retail, and infrastructure stocks. This influx of foreign capital significantly boosted the market, increasing liquidity sharply.
The VN-Index has hit record highs, driven by a robust earnings growth phase that could lift the market over the next 12-24 months. The average daily matched value in July 2022 jumped 76% from the previous month, further indicating the market's strong performance.
Over the past 25 years, company numbers and market capitalization have surged in Vietnam's stock market. The removal of prefunding rules and the launch of a central counterparty clearing (CCP) house will enable day trading in Vietnam's stock market, potentially attracting more investors.
Resolving the foreign ownership limit (FOL) issue could allow a much larger pool of funds to participate in Vietnam's stock market. This could prompt the government to accelerate long-awaited privatisations of state-owned enterprises, further opening up the market.
Vietnam’s economy has maintained a robust GDP growth rate of around 6–7% annually for over a decade. Citi projects about 7% growth in 2025. The VN-Index target was recently raised to 1800 by the end of 2025, reflecting expectations of strong corporate earnings and high liquidity.
Vietnam is attracting growing foreign capital due to improved market transparency, relaxed ownership limits, and the potential MSCI upgrade from frontier to emerging market status, which would likely channel billions in passive inflows. Foreign investors are increasingly active via ETFs and managed funds.
The Vietnamese government, through agencies like the State Securities Commission, is actively aligning market regulations with global standards and fostering an open investment environment to boost transparency and foreign access. This contrasts positively with other Southeast Asian nations where reforms may vary in pace or scope.
Vietnam’s integration into global supply chains, especially in manufacturing and technology sectors such as electronics and renewable energy, enhances its attractiveness compared to regional peers.
In conclusion, Vietnam stands out among Southeast Asian markets due to its consistent economic growth, active policy reforms to facilitate foreign investment, and ongoing modernization of its capital markets. These factors position it for above-average investment potential in the region in 2025.
- The increasing foreign investment in Vietnam's stock market, driven by factors like improved market transparency, relaxed ownership limits, and the potential MSCI upgrade, positions it for high potential in the field of finance and investing.
- In the business sector, the robust economic growth rate, removal of prefunding rules, and launch of a central counterparty clearing (CCP) house in Vietnam's stock market are expected to attract more investors, making it one of the most promising markets in Southeast Asia for 2025.
