Vietnam stock market recovers as VN-Index surpasses 1,850 points

The Vietnamese stock market has shown signs of recovery, with the VN-Index recently surpassing the 1,850-point mark. Following a period of volatility and profit-taking, the index has stabilized, supported by large-cap stocks such as Vingroup (VIC and VHM) and increased interest from foreign investors.

Market analysts are eyeing the 1,880-1,900 point resistance zone as the next major test. While the recovery is evident, market breadth remains a concern, as liquidity and price increases have been concentrated in blue-chip stocks rather than being widely distributed across all sectors.

A significant upcoming catalyst is the inclusion of Vietnamese stocks in the FTSE Emerging All Cap Index, effective September 21. This move is expected to attract passive capital, with initial inflows estimated at approximately $150 million. Additionally, recent M&A and private placement activities, such as PHS increasing its capital, reflect ongoing corporate restructuring within the financial sector.