Vietnam Stock Exchange Recap
VN-Index closed at 1,306.86 points on 31st March 2025 - achieving +2.9% YTD (TR$) return
The Vietnam Index (VN-Index) had an exuberant start in March, continuing its strong uptrend since the commencement of 2025. The Index hit 1,336.26 points on the 17th of March 2025 - a level not seen since June 2022 - and, the volume of net foreign selling had minimal downward impact. Domestic Investor sentiment over the month was more focused on strong earnings being reported by listed constituents, low market P/E, and tangible signs of recovery in the real estate sector (especially in Hanoi). Optimism was also buoyed by the government's GDP outlook for calendar 2025 (recall: the government has set a bullish target of 8%). News that Vietnam's economy grew by +6.9% in Q1 2025 (the best Q1 GDP growth quarterly performance since 2019) was also well received. Stock market P/E is under 12.5x and P/B is about 1.5x.
Meanwhile, bearish opposition was provided by matters mostly 'external' to Vietnam - and, centered on talk of 'tariffs' being rolled out by the USA against countries around the world (including Vietnam), and uncertainty regarding how FTSE Russell would report in April on the nation's efforts for ascension to Secondary Emerging Market status. The FTSE Russell update was subsequently announced on April 8, 2025 (US-time). The update acknowledged Vietnam's positive efforts being made and affirmed 'no change' for now. Together, these factors resulted in the VN-Index ending the month with a total return of +2.9%, YTD (TRS), and average daily turnover hit around USD$890 million equivalent.
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