Vietnam Stock Exchange Recap
VN-Index closed at 1,226.30 points on 29th April 2025-down 6.16% in April
The Vietnam Index (VN-Index) closed at 1,226.30 points on the 29th of April 2025. Sentiment was negatively impacted by the USA's, April 2nd announcement of tariffs on almost 200 countries, Vietnam included. Initially published at 46% and termed "reciprocal tariffs" this is now in a negotiation stance, with an interim flat-10% - rate in effect). Prior to this news, Vietnam's benchmark index was over 1,300 points at the start of the month and the VN-Index closed at exuberant 1,317.83 points on April 2nd, Vietnam-time.
As tariff-talk prevailed, robust earnings outlooks' from local corporates and the strong GDP growth target set by the Vietnamese government for 2025 took a back seat, and the stock market's decline over the ensuing weeks saw Vietnamese equities valuations finish the month at even more attractively priced metrics versus overseas markets especially in terms of 12-month forward P/E ratios (exhibit: MSCI Vietnam @ 12.2 versus MSCI World @ 18.90). Bank shares get sold-off and dominated the market's decline with several large caps in the sector buffeted by heavy foreign selling (exhibit: Vietcombank (VCB VN) fell around 13%, ACB (ACB VN) fell almost 9%, and Techcombank (TCB VN) fell over 6%). Meanwhile, Mobileworld Group (MWG VN) stayed steady - and, outperformance was seen in Vingroup (VIC VN) which closed at VND60,400 per share on April 2nd and VND68,000 per share on April 29th, and Vinhomes (VHM VN) which closed at VND53,000 per share on April 2nd and VND58,400 per share on April 29th.
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