The VN-Index achieved a significant milestone on February 24, exceeding 1,300 points after an almost eight-month absence, fueled by a five-week upward trend against a regional market drop.
Investors anticipate the market will embark on a new period of accelerated growth following an extended lull.
Cash flow returns
After six failed attempts to surpass the 1,300-point mark on the VN-Index in 2024, the market finally broke through at the start of this year. This achievement was accompanied by a surge in liquidity, reaching nearly VND21,000 billion —a sharp rise from the previous session and almost 40 percent higher than the five-week average of VND13,400 billion —indicating a significant improvement in market liquidity.
However, investors still viewed the market with their high caution as shown by the massive selling pressure after VN-Index hit the mark for the first time in the morning, until the strong cash flow at the end of the session, VN-Index successfully conquered the 1,300-point mark.
Hung Nguyen, an experienced investor in the stock market, stated that this cautious sentiment is a natural response to the market's propensity for sell-offs and subsequent declines to the 1,200-point threshold after surpassing the 1,300-point mark in 2024.
He added that macro information as well as the Government's management policies support the market more strongly and clearly, so the market will be very positive.
The VN-Index managed to hold the 1,300-point level despite a slight decline on February 25. The securities and real estate sectors attracted strong cash flow and posted gains, whereas the banking sector faced profit-taking pressure and turned downward. The total trading value on the HOSE and HNX exchanges reached nearly VND21,000 billion.
Many driving forces for the market
According to analysts’ prediction, profit-taking may continue in the near term, which is typical market behavior. Following its surge past 1,300 points, the VN-Index has pulled back, but positive factors have emerged, creating optimism about the potential for a new uptrend to take shape.
First and foremost, the Vietnamese stock market stands a chance of receiving positive evaluations during FTSE Russell’s credit rating upgrade review in March 2025. Additionally, according to Dinh Quang Hinh, Head of Macro and Market Strategy at Vndirect Securities, the market's momentum is further supported by favorable domestic and international macroeconomic developments.
In Mr. Hinh's view, the 2025 GDP growth target of 8 percent or more is very ambitious, and he expects the Government to swiftly adopt drastic policies, such as expanding fiscal and monetary policies, to achieve it.
Senior Director Tyler Nguyen Manh Dung of Market Strategy Research, HSC Securities Joint Stock Company, said that during the week, HSC worked with a number of investors from Singapore and Thailand. Thai investors are quite optimistic about Vietnam's economic prospects.
Economic stimulus measures are anticipated to yield positive results, with this year's growth target expected to surge, driven by public investment. The Government has set an ambitious public investment disbursement goal of approximately VND875,000 billion. As disbursement accelerates, stocks benefiting from public investment are likely to take the lead in the market this year, Mr. Dung commented.
The implementation of the new trading system (KRX) has been a crucial support for the stock market this year, according to economic experts. They say this development is an important catalyst, helping the market transition from the accumulation phase to an explosive state.
Speaking at the 2025 opening ceremony, HOSE Acting Chairman Nguyen Viet Ha outlined the exchange's objectives, which include launching a new IT system to introduce new products, services, and improve processing capacity for future market upgrades.
