Riding out tariff turbulence, investment funds in Vietnam report strong growth gains

Many equity funds in Vietnam have posted strong growth returns, with gains exceeding 30% since the market’s April 10 trough in 2025, data collected by The Investor shows.

Global financial markets this year have been rocked by a series of unpredictable developments, including tariff-related headlines and escalating tensions in the Middle East. These factors have fueled continued volatility across global markets.

Vietnam’s stock market was not immune to global volatility. However, a series of positive catalysts, including H1 GDP growth of 7.52%, the highest level of registered FDI since 2009, and the tariff pact framework with the U.S., helped lift sentiment.

The VN-Index, representing the Ho Chi Minh Stock Exchange (HoSE), posted six consecutive gains from July 4 to 11, rising nearly 5.5%. From its April 10 low to July 11, the benchmark surged 33.21%.

The VN-Index’s rally hasn’t translated into equally strong returns for all investors. Many analysts noted that the benchmark’s performance was largely driven by strong net buying from foreign investors, which in turn spurred domestic institutions to follow suit. Meanwhile, local retail investors were net sellers throughout the week of July 7-11.

Data also shows that since the April 9 trough, the net asset value (NAV) per fund certificate has posted double-digit growth across many investment funds.

Topping the list of 28 equity funds surveyed by The Investor was the DC Dynamic Securities Investment Fund (DCDS) under Dragon Capital - a leading foreign-run asset management firm in Vietnam - with NAV per unit up 35.28%. It was also the only fund to outperform the HoSE benchmark index.

Alongside DCDS, four equity funds also posted NAV-per-unit gains of over 30%, including VCBF Blue Chip Fund (VCBF-BCF) managed by Vietcombank Fund Management Company Limited, Baoviet Equity Dynamic Open-ended Fund (BVFED) by Baoviet Fund Management Company Limited, Viet Capital Asset Management Discovery Fund (VCAMDF) by Viet Capital Asset Management JSC, and Mirae Asset Vietnam Growth Equity Fund (MAGEFGE) by Mirae Asset Securities Vietnam JSC.

Over the past three years, DCDS maintained its lead with a 61.73% gain, followed by domestic funds SSI Sustainable Competitive Advantage (SSI-SCA) (+52.93%), VCBF Midcap Growth Fund (VCBF-MGF) (+50.98%), and VCBF-BCF (+46.05%).

Data from websites and H1 reports show that the top five stocks in these funds’ portfolios are usually from the VN30 group, comprising the 30 largest blue chips on the HoSE.

Looking at sector groups, large-cap banking stocks are the most favored by investment funds.

Several non-VN30 stocks also made it into the top five holdings of some funds, including Binh Duong Water-Environment JSC (BWE) in BVFED, Nam Tan Uyen JSC (NTC) in VCAMDF, Petrovietnam Technical Services Corporation (PVS) in VCBF-MGF, and Duc Giang Chemicals Group JSC (DGC) in VinaCapital Modern Economy Equity Fund (VMEEF).

The Lighthouse Dynamic Investment Fund (LHCDF) drew attention with two of its top holdings - Nam A Commercial Joint Stock Bank (NAB) and Binh Dinh Pharmaceutical and Medical Equipment JSC (DBD), both of which are not part of the VN30 group. As of the April 9 session, the fund had delivered a return of 16.97%.

Vo Nguyen Khoa Tuan, senior executive director of securities at Dragon Capital, noted that compared to individual investing, fund management companies hold significant advantages, including teams of in-depth analysts, advanced research tools, as well as the ability to diversify portfolios and manage risks professionally.

“Individual investors often face constraints in knowledge, time, and resources, leaving them more vulnerable to emotional decision-making and a lack of clear strategy during market swings. Fund investing, by contrast, provides access to professional management, reduces risk exposure, and optimizes long-term returns,” said Tuan.

Speaking about DCDS’s investment strategy, Tuan said the fund focuses on building a diversified portfolio, closely monitoring market trends, and selecting stocks based on thorough analysis of growth potential, corporate governance, and reasonable valuation.

He added that the fund also adjusts the allocation between equities and cash flexibly in response to market conditions, aiming to optimize investment performance.

With the advantage of in-depth research and analysis, market corrections are seen as buying opportunities.

Ngo Minh Hoa, in charge of northern partner development at VCBF, said market downturns present a chance to accumulate more stocks.

With the Dollar-Cost Averaging (DCA) method - dividing the total investment amount into equal parts and investing periodically - discipline is key, Hoa said.

Regardless of whether the market is rising or falling, investors should stick to monthly DCA purchases. Long-term investors don’t win by timing the market, but through persistence, she added.

Hoa also noted that market volatility is normal, and a drop over one or two sessions holds little significance in a 3-5-year accumulation journey.

“We always view market declines as opportunities,” she said. “In particular, when the VN-Index corrected due to reciprocal tax news, VCBF saw it as a once-in-a-lifetime chance to buy and accumulate aggressively.”

Party chief To Lam and President Donald Trump on July 2 (Vietnam time) announced that Vietnam and the U.S. have reached agreement on a joint statement on a fair, balanced, and reciprocal trade agreement framework.

Following the talk, on Truth Social, President Trump wrote that Vietnam will pay a 20% tariff on any and all goods sent into the U.S., and a 40% tariff on any transshipping.

This is down significantly from the 46% in the original reciprocal tariff plan announced on April 2, 2025. In return, U.S. products into Vietnam will enjoy zero tariff, Trump wrote.