Vietnam's VN Index opens little changed at 1,682.21

Vietnam's VN Index opens little changed at 1,682.21

The Vietnam stock market, as reflected by the VN Index, opened with little change on September 2, 2025, at 1,682.21. This performance comes amidst a backdrop of robust capital inflows and significant market reforms, signaling broader economic ambitions and ongoing efforts to elevate the country's capital market.

Recent market activity has been driven by strong liquidity, with daily trading volumes consistently reaching 2–3 billion USD. High-value transactions, particularly in infrastructure construction and equities aligned with reform narratives, have become commonplace. On August 18 and 19, infrastructure construction stocks dominated capital inflows, with many reaching their daily ceiling prices. This rally was fueled by expectations of increased public investment, with 250 projects launched or inaugurated nationwide, totaling 1.28 quadrillion VND (approximately 50 billion USD) [1].

The financial sector has also contributed to market momentum. Military Bank (MB)’s strategic partnership with Dunamu, the operator of Upbit, a leading digital asset exchange in the Republic of Korea, has boosted MBB shares. A pilot resolution for a digital asset trading platform is expected by late August or September 2025, as part of plans to establish an international financial centre. Additionally, new regulations effective October 1, 2025, will allow credit institutions designated as mandatory transferees of specially controlled banks to enjoy a 50% reserve requirement reduction, further lifting investor interest in MBB shares [1].

IPO activity has also supported banking stocks. Techcombank (TCB) and VPBank (VPB) are advancing plans to list their securities subsidiaries, with Techcom Securities (TCBS) achieving favorable IPO pricing and supporting TCB’s share gains since May 2025. VPBank Securities (VPBankS) is also preparing for its IPO. These moves diversify shareholder bases and enhance corporate ecosystems [1].

Experts view this surge as more than short-term speculation, reflecting an inflection point for Vietnam’s capital market in terms of scale and quality. Shengyong Goh, Head of Southeast Asia Research at China International Capital Corporation (CICC), highlighted Vietnam’s structural progress under "Doi Moi 2.0," a new phase of reform. Vietnam’s successful tax negotiations with the US under President Donald Trump’s administration and its reform agenda, including administrative consolidation and improved governance, lay a solid legal foundation for capital market sustainability [1].

Pham Luu Hung, Chief Economist at SSI Securities, noted that meeting double-digit growth targets will require investment equivalent to 30–40% of GDP. Vietnam must strengthen its capital market to support more ambitious goals, and the creation of an international financial centre is expected to enhance capital access. The stock market is anticipated to undergo a classification review by FTSE in October, with prospects of being upgraded to emerging market status after years on the watch list. This could reduce capital costs by 2–2.5 percentage points for government and businesses, unlocking funding for large-scale projects such as the North-South high-speed railway, regional links with China, expressways, and metro systems [1].

Reform is ongoing, involving regulatory and market structure upgrades. Improving the quality of listed companies, enhancing corporate governance, accelerating IPOs and divestment, and strengthening the secondary market are long-term objectives. The current resurgence in major IPOs has revived investor expectations for higher-quality investment opportunities.

In conclusion, Vietnam's stock market continues to demonstrate resilience and growth potential, driven by strong liquidity, strategic partnerships, and significant market reforms. The VN Index's performance on September 2, 2025, reflects this positive momentum, opening little changed at 1,682.21.

References:
[1] https://vietnamnet.vn/en/vietnam-s-capital-market-reform-driven-momentum-2436979.html