Vietnam Stock Exchange Recap
VN-Index closed at 1,332.60 points on 30th May 2025-up 8.67% (April 30th May 30th)
The Vietnam Index increased +8.67% in May. Much of the upswing was courtesy of Vingroup (VIC VNL related companies to Vingroup (exhibit VRE VN), and increasingly positive sentiment towards US-VN tariff negotiations. Market liquidity was robust-daily liquidity for May was just under USD$930 million-and was bolstered by 190.850 new accounts (all types) being added. This saw the number of trading accounts increase to a new all-time high-10,070, 952-accounts. As at the end of May 2025, foreign institutional accounts totaled 4,669-just 12 less than the 4,681 foreign institutional accounts recorded in April. The number of foreign individual accounts as at the end of May rose solidly to 43738 and foreign investors ended as net buyers for the month, buying around USD$19 million.
Examining trading accounts further, as recently as December 2015, the total number of trading accounts stood at just 1,569.792. Thus, the increase in account numbers between December 2015 and May 2025 represents an increase of 8.501180-or nearly the entire population of Hanol, the nation's capital which according to the General Statistics Office of Vietnam (GSO) was 87 million in 2024. This is tremendous growth and underscores the efforts being made by the government, State Securities Commission, VSDC MOF, SBV, stock exchanges and securities companies to broaden public participation in the stock market.
Foreign direct investment (FDI) remained strong 5M YTD 2025, the total amount was USD$18.4 billion. This is an increase of 57%, YoY, and the number one ranked country, YTD, is Singapore. Credit growth was 6.5% over the first five months of 2025. Private sector sentiment is strong and the government reiterated its calendar 2025 GDP growth target remains at a bullish 8%. This target will be supported by policy initiatives, Including the May 4th, 2025 launch of -Resolution 68-a Politburo directive focused on the private sector, making it o champion of economic growth jokin to the 1986 Dol Mor reform) In summary, expect to neo reforms implemented to enhance entrepreneurship access to capital, reduce red-tape, streamline the civil service, and double the number of private enterprises in Vietnam to 2 million by 2030. The government wants the private sector to contribute greater than 55% to national GDP in the next five years. Included in this initiative will be CSR and ESG compliance to continue FDI attraction.
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