Vietnam’s stock market is on a bullish run as the VN-Index surged to 1,487 points on July 17, driven by strong foreign inflows and domestic investor enthusiasm. The benchmark index now stands just over 40 points below its all-time high of 1,528.57 set on January 6, 2022.

The morning session saw the VN-Index gain nearly 12 points by 10:10 AM, following a 15-point jump the previous day. This marked the highest level in over three years, with investors encouraged by continued foreign buying and a growing appetite for equities from local investors.

Since bottoming out more than three months ago due to tariff-related market jitters, the VN-Index has rebounded by approximately 390 points. While there was a brief dip on July 15 due to profit-taking, which sent the index down nearly 10 points, foreign investors remained net buyers, injecting over VND 1.1 trillion (USD 43.2 million) that day.

Foreign capital remains focused on financials, banking, real estate, and brokerage sectors, which continue to attract heavy interest. This foreign-driven momentum follows years of net outflows and reflects a broader trend across emerging markets, where capital flight had been dominant since mid-2020.

Vietnam targets stock market upgrade to unlock new investment streams

At a conference on July 17 titled “Enhancing investor awareness towards stock market reclassification,” Pham Duc Son, Editor-in-Chief of Nha Dau Tu Magazine, emphasized that upgrading Vietnam’s stock market status is a strategic national goal for 2025. The aim is to elevate Vietnam from a frontier to an emerging market.

Phan Xuan Thuy, Deputy Head of the Central Committee for Propaganda and Education, noted that with a market capitalization equal to 55% of GDP, the stock market is a key driver in realizing Vietnam’s 8% GDP growth target for 2025 and beyond.

The stock market is viewed as a powerful lever for economic restructuring, accelerating SOE equitization, promoting transparency, and helping Vietnamese enterprises expand regionally and globally.

According to Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), the local stock market has seen robust growth in terms of scale, liquidity, and product quality, becoming an essential channel for medium- and long-term capital. Trading volume over the past 10 sessions has outpaced others in Southeast Asia.

She added that securing an upgrade from frontier to emerging market status will serve as a significant catalyst for attracting foreign capital. Global financial conditions are favorable, with institutional money pouring into emerging markets. JP Morgan has even recommended buying Vietnamese stocks, despite the VN-Index’s recent rally.

JP Morgan estimates that if Vietnam is upgraded by FTSE in its September 2025 review, the move could attract over USD 500 million in passive investment and boost market sentiment.

Market excitement is also building around the upcoming Q2 earnings season. Forecasts point to strong growth across core sectors such as banking, real estate, retail, steel, and brokerage. Low interest rates, increased public investment, and stronger domestic consumption are fueling this optimism.

VN-Index is projected to retest and possibly surpass the 1,500-point level soon. Mirae Asset Securities even forecasts that the index could reach a record 1,550 points as early as Q3 2025.

Manh Ha