Vietnam stock market likely to reach new heights from late 2025: expert

Vietnam’s stock market may reach new heights in the long run, particularly from late next year, says Nguyen Ky Minh, chief economist at Guotai Junan Securities Vietnam.

Speaking in the latest episode of the ongoing weekly Finance Street Talk Show on national broadcaster VTV8, Minh stated that although the Vietnamese stock market has yet to experience a significant breakthrough in the short term, its stable advantages regarding exchange rates, inflation, interest rates, and public investment promotion suggest a long-term upward trend.

Short-term pressure has decreased, but long-term risks are on the rise, Minh argued, referring to the U.S. Fed’s possible rate cut slowdown, global geopolitical tensions, and possible inflation rise during President-elect Donald Trump’s term.

Given the unpredictable fluctuations in the medium term, global investors are likely to remain cautious, the expert noted.

Even if there are positive short-term changes, they will likely limit their investments in frontier and emerging markets, including Vietnam. However, if Vietnam can maintain political and economic stability, investors are expected to return soon, he said.

VN-Index, Vietnam’s benchmark, topped 1,300 points in September before reversing course and fluctuating mostly between 1,200 and 1,300 points due to insufficient liquidity.

The rise in global instability and expectations of higher interest rates have driven foreign investors’ shift to safer markets. For domestic investors, a slowdown in capital mobilization compared to credit growth has resulted in a shortage of cash flow.

“This suggests that cash flow is being diverted from traditional channels, possibly to maintain business operations or to expand production in the recovering economy. Whatever the reason, liquidity in secondary markets, such as the stock market, will likely be impacted to some extent,” Minh remarked.

As a result, the expert believes that the Vietnamese stock market is unlikely to see a great breakthrough in the short term due to the current lack of liquidity.

He forecast new heights for the local stock market in the next one-three years thanks to growth support policies and aggressive public investment disbursement.

Besides, overseas investors will probably return to Vietnam when Donald Trump’s policies are unveiled next year, Minh noted, predicting the VN-Index at 1,300-1,400 points in the second half of 2025.