Besides the surge of the Vingroup group, the return of foreign investors is also a supporting factor for the Vietnamese stock market.

The Vietnamese stock market continued its upward trend, mainly driven by the Vingroup group. All four stocks of billionaire Pham Nhat Vuong – VIC, VHM, VPL, and VRE – increased in price, with VHM and VRE even reaching their ceiling price at times. The VN-Index briefly surpassed 1,800 points, for the first time in history.

Besides the surge of the Vingroup group (accounting for 25% of HoSE’s market capitalization), the return of foreign investors is also a supporting factor for the market. After a period of continuous net selling, foreign investors have resumed net buying since the beginning of December with a value of nearly 1,300 billion VND on HoSE up to before the December 25th session. Although the value is not large, this is still a positive signal for Vietnamese stocks.

In a recent analysis report, MBS suggested that short-term factors hindering the market have passed (such as derivative expiration, ETF portfolio restructuring, or seasonal increases in exchange rates and deposit interest rates), and the market is heading towards an upward trend towards the end of the year.

MBS recommends that investors take advantage of any fluctuations before Christmas to accumulate stocks, focusing on the Retail sector (shopping demand) and Banking (year-end credit), but be cautious about using high margin during the long holiday period.
Sharing the same view, Mr. Nguyen The Minh – Director of Securities Analysis at Yuanta – believes that the stock market at the end of the year is likely to experience an upward trend associated with the New Year and Lunar New Year holidays, as investor sentiment improves and capital tends to return.
In the long term, Dragon Capital believes Vietnam possesses a relatively favorable macroeconomic foundation with sustained high economic growth, controlled inflation, and an increasingly prominent role for the private sector. These are crucial factors supporting the profit prospects of listed companies in the medium and long term.

Furthermore, the stock market is expected to continue improving in quality and efficiency thanks to internal economic drivers, including increased infrastructure spending, sustained positive FDI inflows, and a growing domestic investor base.

“We believe this is the right time for investors to maintain steadfastness, consolidate sound investment positions, and aim for long-term goals, thereby laying the foundation for a more positive 2026,” Dragon Capital commented.

Also taking an optimistic view, Mr. Petri Deryng – head of Pyn Elite Fund – affirmed that the 3,200-point target set by the fund for the VN-Index is entirely feasible within the next three years, based on average corporate profit growth of 18-20% per year. With this growth momentum, the market’s P/E valuation in 2028 will reach a reasonable level of 16 (compared to the current undervalued level).

According to this foreign fund, the biggest driver for the new surge in the Vietnamese stock market comes from the macroeconomic foundation. The target of GDP growth exceeding 10% per year over the next 10-15 years could elevate the size of the economy and the living standards of the people to a higher level. The fund believes that this direction is not only reflected in policy statements but has also been concretized through strong administrative reforms, freeing up enormous resources for the economy.
PYN Elite’s optimism also stems from advancements in the modernization of the capital market. The FTSE’s upgrade of Vietnam to a Secondary Emerging Market last October is the clearest evidence of this. This foreign fund also believes that MSCI will soon take similar action after reforms such as a new trading system, the removal of prefunding requirements, and the implementation of a central clearing model (CCP) are completed.

Ha Linh

Market Life