VN-Index advances to highest levels since 2022
From a first half low of 1,073 points to a near 3-year high - VN-Index closed on June 30 at 1,376.07
Q2 was an exhibition of domestic investor confidence. The market expeditiously brushed aside April 2nd's 'Liberation Day' U.S. tariff news and within the VN30 several large-caps frequently hit new year-to-date highs (exhibit: Vingroup, Vinhomes, Vincom Retail, Techcombank).
The positive sentiment saw the VN-Index repeatedly break through both technical resistance points and recent year highs. In fact, by the end of June the Ho Chi Minh Stock Exchange advanced to levels not seen since 2022. An approximate 20% increase in monthly average trading volume in Q2 compared to Q1 provided the momentum and local Investors more than accounted for foreign investor selling over the period.
Vietnam's government provided considered and well-timed support (exhibit: Resolution 68, provincial restructuring, digitalization, etc.). In fact, Q2 could be described as an exemplar of geopolitical negotiation expertise and strong fiscal policy. The period also saw the Government announce directives regarding the 'North-South' high-speed rail project - an industrial-scale project estimated to cost between USD$60-70 billion and several of the nation's largest corporations declared their interest to participate. In 2025, public capital works for infrastructure projects and energy generation are estimated to exceed USD$30 billion, and multiple listed corporations and large private enterprises have already signaled their interest in environmentally friendly energy generation projects (exhibit: PetroVietnam, Gelex (GEX VN), Vingroup (VIC VN), etc.).
Overall, Q2 proved to be a rather unique point in time. Some observers termed it - Doi Moi 20 - others a declaration of raising the nation to higher levels of capability and strategic, sustainable growth. The start of a new era, where private enterprise will be even more encouraged to drive the domestic economy and advance the nation forward. The VN-Index Is up around 8%, YTD, and the market is looking positive for the remainder of calendar 2025.
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