Vietnam presents significant growth opportunities
Vietnam's Stock Market Surges Ahead in Southeast Asia
Vietnam's stock market is experiencing a significant surge, with the number of accounts reaching nearly 10.5 million as of the end of July. This marks a rise of 226,300 from June and 1.2 million since the start of 2025.
The market's breakout in July can be attributed to a major driver of increased foreign capital inflow. This influx of capital has not only freed investor sentiment but also pushed liquidity sharply higher.
The average daily matched value in July jumped 76% from the previous month, a clear indication of the market's momentum. Foreign capital, returning to the Vietnamese market in July, net bought more than $340 million across the market.
Experts predict that Vietnam's stock market is entering a new growth phase, with rising investor confidence, sector-specific momentum, and renewed foreign capital interest as key drivers. The VN-Index has reached record highs, driven by a phase of strong earnings growth.
Vietnam's stock market outlook appears particularly strong and favorable compared to other Southeast Asian markets. The country shows robust GDP growth forecasts, with 7.5-7.7% projected for 2025 and potentially 9-10% in 2026, outpacing many regional peers.
The Vietnamese government demonstrates strong commitment to structural reforms, regulatory upgrades, and market modernization. Key initiatives include aligning regulations with global standards, improving governance, enhancing institutional frameworks, and infrastructure modernization. These reforms support Vietnam’s anticipated upgrade from frontier to emerging market status by major indices like MSCI and FTSE Russell in 2025.
While detailed public debt levels compared to neighbors are not explicitly cited, Vietnam’s inflation and exchange rates remain under control, contributing to stability. The government advances public investment primarily in infrastructure and green energy, with some caution about uneven public capital deployment and bond market vulnerabilities.
Vietnam maintains a relatively stable macroeconomic environment with inflation projected below 3.5% for 2025 and stable exchange rates. There are no explicit indications of aggressive monetary tightening or policy shifts, which contrasts with some regional peers facing inflation or interest rate volatility.
Vietnam's equity market is attracting rising foreign investor participation thanks to reforms relaxing ownership limits and expanding investment instruments. The impending MSCI and FTSE Russell upgrades are expected to trigger substantial passive inflows ($3–$7 billion), boosting liquidity and valuations to more institutional-grade levels.
In summary, Vietnam’s stock market outlook is comparatively more positive and structurally supported within ASEAN in 2025. The removal of prefunding rules and the launch of a central counterparty clearing (CCP) house will enable day trading in the Vietnamese market. Once the foreign ownership limit issue is resolved, a much larger pool of funds will be able to participate in the Vietnamese market.
The strong economic growth, political will, and accommodative monetary policy in Vietnam make it an attractive investment destination. The Vietnamese market is expected to continue its growth trajectory over the next 12-24 months due to robust earnings growth and expected capital inflows. Foreign capital is returning to the Vietnamese market, with a larger wave of capital inflows expected over the next two years.
Vietnam's stock market has marked a quarter-century of operation with a ceremony, commemorating the sector's robust development while launching a new IT system designed to underpin its next stage of growth. The market is experiencing a surge in company numbers and market capitalization, positioning Vietnam as a key player in the Southeast Asian investment landscape.
Investors are increasingly drawn to Vietnam's stock market, as foreign capital net bought more than $340 million in July, marking a significant rise in foreign investor participation. This growing interest is fueling an increase in liquidity and valuations, moving the market closer to institutional-grade levels.
With experts predicting a new growth phase for Vietnam's stock market, led by rising investor confidence, sector-specific momentum, and foreign capital interest, the sector is attracting attention for finance and investing opportunities within the stock-market.
