Vietnam Stock Exchange Recap
VN-Index closed at 1,305.36 points on February 28th 2025 - Hitting highest closes for 20 months
VN-Index hit 1,300 points in February, and soared over the month to its highest level in almost 20 months. In fact, not since June 2022 has the VN-Index performed so robustly - a commendable achievement in such a volatile global macro-environment. With flows in the world's emerging and frontier markets recording for the most part 'net outflows' one can see the same with the Vietnam Stock Exchange - by the end of February 2025 more than USD4.2 billion equivalent in net foreign selling has occurred since January 2024. The percentage of foreign ownership on the Vietnam Stock Exchange is now close to 13% - put into context, this is a little more than half of its 2015 level. Thus, as and when Vietnam receives the 'green light' from FTSE Russell announcing Vietnam has been approved to ascend from a 'Frontier' to a 'Secondary Emerging Market' one can reasonably assume a swift return of foreign inflows.
Coupled with increasingly optimistic potential for Vietnam's market upgrade, the economic data released by various ministries and regulatory bodies shows the nation is performing well. In the first two months of 2025, exports are strong (up +8.4%), and Industrial Production Index (IIP) numbers are similarly solid (manufacturing up +9.3%). Meanwhile, domestic investors are increasing in number and by activity (exhibit: Domestic Investors advanced to 9.48 million in total - and, in the month of February 2025 opened 149,802 new accounts). Average Daily Trading Value (ADTV) is also up (exhibit: over USD$700 million in February versus just over USD$500 million in January).
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