Vietnam’s stock market hits historic highs
Foreign capital flows are expected to bounce back in 2022 |
Growth prospects
Last year was a boom year for the Vietnamese stock market in terms of points, size and market liquidity. According to the State Securities Commission of Vietnam, by December 28, 2021, the VN-Index reached 1,494.39 points, an increase of 35.4 percent compared to the end of 2020, while the HNX-Index ended at 458.05 points, up 125.5 percent. Vietnam’s stock market capitalization increased by 46 percent compared to the end of 2020, reaching VND7,729 trillion. The value was equivalent to 122.8 percent of the country’s gross domestic product (GDP) in 2020 and 92 percent in 2021.
The number of new trading accounts reached more than 1.5 million in 2021, higher than the total of the previous four years. Some Vietnamese stock market sessions reached several billion US dollars in 2021 and the VN-Index hit historic highs.
As many as 537 codes were traded on the Ho Chi Minh Stock Exchange (HoSE) by January 28, 2022, with a market capitalization value of more than VND5,700 trillion, equivalent to 68.67 percent of GDP in 2021 (GDP at current prices).
The first trading session of 2022 saw 110 stocks hitting the ceiling. Phan Van Mai, chairman of the Ho Chi Minh City People’s Committee, said on February 8 that the city will promote equitization and list reputable stocks on the stock market. The city will also strive to become a regional and international financial center, he said.
|
Foreign capital to bounce back
James Estaugh, head of securities services at HSBC Vietnam, said Vietnam’s stock market experienced a record high net selling by foreign investors in 2021 valued at VND62.358 trillion. However, foreign capital flows will bounce back in 2022. Although the Vietnamese stock market is considered small, its average daily trading value has grown continuously. In 2021, the average trading value reached VND25.96 trillion (equivalent to about US$1.13 billion) per session, an increase of 250 percent compared to the previous year, compared with US$2 billion, US$800 million, US$500 million and US$100 million per session, respectively, in Thailand, Indonesia, Singapore and the Philippines.
Michael Kokalari, chief economist of VinaCapital, said the Vietnamese stock market will thrive in 2022 as it continues to receive support from foreign capital flows and Vietnam’s economic recovery. VinaCapital’s investment strategy is to identify stocks and sectors that will benefit from Vietnam’s economic recovery, including non-essential consumer goods, finance and real estate, he said.
The newly issued regulations and policies of the Law on Securities and guiding documents are also expected to support businesses and protect the legitimate rights and interests of investors.
See also
Asian shares are at their lowest in three weeks
16:18 | 19/10/2024 Stock Market
Stock market sees notable recovery amid ongoing uncertainties
09:11 | 15/10/2024 Stock Market
SSI: Masan to benefit from Vietnamese stock market upgrade
17:11 | 02/10/2024 Stock Market
Japan helps Vietnam improve stock market’s transparency
15:40 | 23/09/2024 Stock Market
Market expected to pass psychological 1,300 mark
15:10 | 26/08/2024 Stock Market
Market soars above 1,260 points
10:43 | 20/08/2024 Stock Market
See more news
Stock market expected to continue recovery in the remainder of the year
17:56 | 18/08/2024 Stock Market
Surge in new individual securities accounts in July
08:21 | 10/08/2024 Stock Market
The market requires a prolonged period to reach stability
14:55 | 05/08/2024 Stock Market
Vietnamese stock market sees remarkable 24-year transformation
09:30 | 31/07/2024 Stock Market
Bank stocks surge on dividend payouts and profit growth
07:00 | 29/05/2024 Stock Market
Stock market upgrade to help Vietnam lure another 10 bln USD in investment
09:23 | 03/05/2024 Stock Market
Over 163,000 new stock trader accounts created during March
08:48 | 09/04/2024 Stock Market
PM urges efforts to upgrade stock market to emerging status
08:50 | 29/02/2024 Stock Market
Vietnamese stock market continues strong upward trend
09:02 | 24/02/2024 Stock Market
Experts suggest measures to lure investment in securities market
08:46 | 19/12/2023 Stock Market
Seven strategic directions to lead the nation into a new era
17:04 | 05/11/2024 Infographic
WB, Switzerland help boost Viet Nam’s sustainable urban development
16:53 | 05/11/2024 Society
Finance ministry proposes extending environmental tax cut on fuel products in 2025
16:47 | 05/11/2024 Policy
Workshop looks to address environmental management issues in industrial areas
16:34 | 05/11/2024 Environment
PM visits President Ho Chi Minh relic site in Kunming
16:30 | 05/11/2024 News and Events
Multimedia
Seven strategic directions to lead the nation into a new era
17:04 | 05/11/2024 Infographic
Delicacy of Hà Nội’s autumn
11:29 | 04/11/2024 Lifestyle
Vietnam-Cuba traditional solidarity, special friendship
10:12 | 02/11/2024 Infographic
Vietnam expands FTA network
09:15 | 01/11/2024 Infographic
Vietnam – Qatar friendship and multifaceted cooperation
09:06 | 31/10/2024 Infographic
Finance ministry proposes extending environmental tax cut on fuel products in 2025
16:47 | 05/11/2024 Policy
NA deputies call for solutions to ensure the feasibility of drug prevention and control programme
17:33 | 03/11/2024 Policy
15th NA’s 8th session to further discuss legislative, inspection work next week
16:58 | 03/11/2024 Policy
Developing education, training to serve new era of nation: PM
09:57 | 03/11/2024 Policy
Efforts to bring electricity to remote villages of Ha Giang Province
15:15 | 04/11/2024 Energy
Vietnamese F&B industry works to catch up with green consumption trend
17:38 | 03/11/2024 Industry
PM calls for Qatar's support for energy development in Việt Nam
08:56 | 01/11/2024 Energy
Efforts made to create breakthrough in Vietnam's automobile industry
09:28 | 31/10/2024 Industry
Foxconn to invest US$80 million in Bắc Giang for chip manufacturing expansion
16:16 | 04/11/2024 Investment
Da Nang to invest additional 16 million USD into software park
17:19 | 03/11/2024 Investment
PM receives heads of leading investment firm, authority of Qatar
09:07 | 01/11/2024 Investment
Forum suggests suitable orientations for green development strategy in Lam Dong
15:44 | 31/10/2024 Investment
Krungsri proposes accelerating purchase of 50% of SHBFinance’s charter capital
15:46 | 05/11/2024 Finance-Banking
Finance ministry proposes two price management scenarios for year-end
10:11 | 04/11/2024 Finance-Banking
Banking sector prioritises support for import-export firms
16:35 | 02/11/2024 Finance-Banking
Smart Banking 2024 workshop and exhibition held
15:32 | 31/10/2024 Finance-Banking
Workshop looks to address environmental management issues in industrial areas
16:34 | 05/11/2024 Environment
More accurate forecasts at all levels needed to reduce coastal disaster risk
15:07 | 04/11/2024 Environment
Nearly-98-million-USD environment project inaugurated in Ninh Thuan
10:13 | 03/11/2024 Environment
Northern region to experience first cold weather of this winter
14:30 | 31/10/2024 Environment
Technology “key” to attract FDI
09:09 | 05/11/2024 Science - Technology
HCM City partners with Google for Education in digital transformation
14:47 | 04/11/2024 Science - Technology
Việt Nam develops 'purely Vietnamese' generative AI
09:45 | 01/11/2024 Science - Technology
Vietnam’s first semiconductor expo underway in HCM City
09:36 | 01/11/2024 Science - Technology
WB, Switzerland help boost Viet Nam’s sustainable urban development
16:53 | 05/11/2024 Society
VRA proposes over $7.2b for Lào Cai-Hà Nội-Hải Phòng-Quảng Ninh Railway project
09:22 | 05/11/2024 Society
Eastern section of $1.23b southern expressway will soon be opened for use
15:03 | 04/11/2024 Society
Vietnam aims to produce innovative medicines
14:53 | 04/11/2024 Society
190 businesses win Vietnam National Brand Award 2024
10:33 | 05/11/2024 Vietnamese Brands
Vietnamese AI firms have many chances of development
14:51 | 04/11/2024 Vietnamese Brands
Cooperatives play significant role in OCOP product development
14:45 | 04/11/2024 Vietnamese Brands
Cơ Tu ethnic’s farm produce debuts in supermarket system
09:08 | 31/10/2024 Vietnamese Brands
Calligraphy exhibition highlights literary masterpieces
10:53 | 05/11/2024 Culture
VN int’l fashion week Fall/Winter 2024 prepares to open
11:38 | 04/11/2024 Culture
Delicacy of Hà Nội’s autumn
11:29 | 04/11/2024 Lifestyle
$10-billion national target programme on cultural development officially proposed to parliament
18:02 | 02/11/2024 Culture
Time Out lists Vietnam among Top 5 Memorable Christmas Escapes in Asia
10:27 | 05/11/2024 Tourism
Foreign travellers' interest in northern regions still strong after typhoon
14:15 | 04/11/2024 Tourism
Ninh Bình Festival to boost historical heritages of VN’s former capitals
14:10 | 04/11/2024 Tourism
Halal tourism: tackling religious and cultural differences
17:57 | 02/11/2024 Tourism