Vietnam stock market offers reasonable prices: analysts

VinaCapital has revised its EPS growth forecast for listed companies in Vietnam to 25% in 2022, from the 12.5% annual average since 2010. Photo by The Investor/Trong Hieu.
Given the macroeconomic stability and growth potential, as well as a low price-to-earnings ratio, investors can leverage opportunities to invest at reasonable prices, according to Vietnam’s leading investment funds.
Despite strong selling pressure from poor retail investor confidence, Vietnam’s stock market features compelling fundamental strengths. These include a P/E ratio of 11.4x, much lower than the five-year average of 14.5, as well as a 30% valuation discount versus Vietnam’s regional peers, VinaCapital stated in a report.
Earnings of companies listed on the Hanoi and Ho Chi Minh stock exchanges surged by around 30% year-on-year in the first quarter of 2022. The fund predicted the figure would be nearly 30% this year.
The value of the Vietnamese dong remains nearly unchanged year-on-year, despite a 15% surge in the US Dollar Index. VinaCapital believed the Vietnamese dong’s resilience indicates the underlying strength of the local economy, which in-turn supports the market’s earning growth and price appreciation.
The positive outlook of the Vietnamese stock market is also based on macro-economic stability, the fund added.
As consumption accounts for about two-thirds of Vietnam’s GDP, its robust ongoing rebound has bolstered VinaCapital forecast for 6.5% GDP growth this year.
Two main variables back the projection, including expectation of a 5% rise in "real retail sales" and the country's post-pandemic recovery, which is likely to add at least 2% to Vietnam's GDP growth, according to VinaCapital.
The plunge in Vietnam’s Covid-19 cases prompted the biggest increase in manufacturing employment in a year during April. Manufacturing accounts for over 20% of the country’s GDP and grew by a healthy 8% year-on-year in April, albeit a rising number of companies reported difficulties securing production inputs due to China’s zero-Covid policy, the report noted.
However, "China’s policy is another reason for companies to shift manufacturing to Vietnam, which saw record high foreign direct investment inflows in April," said Michael Kokalari, VinaCapital’s chief economist.
Dragon Capital reported that net profits of listed enterprises jumped by 36% year-on-year and 22% quarter-on-quarter, led by banking, raw materials, and retail with growth rates of 752%, 38%, and 23% respectively.
Given the bullish profit indications, the fund has revised its earnings per share growth forecast to 25% in 2022, much higher than the 12.5% annual average since 2010.
It is also believed that the government’s actions would direct cash flow from speculative stocks into quality stocks with a good basis, high profitability, and little legal risk.
With the falling stock price and rising profit growth, Vietnam’s stock valuation has become highly appealing, creating potential returns for long-term investors, according to Dragon Capital.
PYN Fund Management, a Finnish fund manager with 23 years of experience in Asia, holds the same view of Vietnam’s appealing stock price.
The market P/E has decreased from 14.1 to 10.9 following the VN-Index decline of 23%. "With this valuation, Vietnam has a stable economy and extremely cheap stocks," Petri Deryng wrote in a report published on May 19.
- Read More
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.
Finance - Tue, July 15, 2025 | 9:00 am GMT+7
Singapore supports businesses, workers amid US tariff pressures
The Singapore Economic Resilience Taskforce (SERT) has announced measures to help Singapore companies adapt to a new U.S. tariff.
Southeast Asia - Mon, July 14, 2025 | 10:11 pm GMT+7
Malaysia makes efforts to minimize US tariff’s impacts
Malaysia’s top export to the U.S. - electronics and electrical products - will face the biggest brunt of a 25% tariff hike that the U.S. has imposed on the country, said head of School of Business under the Monash University Malaysia Prof Nafis Alam.
Southeast Asia - Mon, July 14, 2025 | 10:08 pm GMT+7
Thailand faces $6.14 bln export loss if US tariff is 25-36%: forecast
Thailand could lose up to THB200 billion ($6.14 billion) in export value this year if the U.S. imposes new tariffs ranging from 25-36% on Thai goods, according to a forecast from the University of the Thai Chamber of Commerce (UTCC).
Southeast Asia - Mon, July 14, 2025 | 10:06 pm GMT+7
Southern Vietnam province Tay Ninh okays many high-tech agri projects
Tay Ninh authorities recently granted in-principle approvals to a string of high-tech agricultural projects, paving the way for significant development opportunities in the southern province.
Industries - Mon, July 14, 2025 | 10:00 pm GMT+7
Construction ministry backs $1.95 bln port project in southern Vietnam
Geleximco Group's Cai Mep Ha container and general port project aligns with the national master plan and the master plan for Vietnam’s seaport system, according to the Ministry of Construction.
Infrastructure - Mon, July 14, 2025 | 5:09 pm GMT+7
Electric vehicles in Vietnam: 7 years of development and double-digit growth prospect
The shift toward greener mobility has been underway in Vietnam and the local electric vehicle (EV) market is expected to see double-digit growth thanks to favorable policies, infrastructure development, automakers’ efforts, and a young consumer base.
Economy - Mon, July 14, 2025 | 4:46 pm GMT+7
HCMC apartment prices continue to rise as supply hits 10-year low in H1
The apartment market in former Ho Chi Minh City continued to see rising prices since the total supply in the first six months of 2025 hit the lowest since 2015, according to real estate consultancy firm DKRA.
Real Estate - Mon, July 14, 2025 | 4:03 pm GMT+7
Buyer secures Sunshine Group’s Hanoi shophouse at 15% lower than market price via livestream
A buyer successfully secured a shophouse at property major Sunshine Group’s Noble Palace Tay Thang Long project in Hanoi for VND11 billion ($421,295), VND2.5 billion or 15% below market value, during a bidding livestream on the NobleGo platform held last Friday evening.
Companies - Mon, July 14, 2025 | 1:37 pm GMT+7
Vietnam’s major rice exporter Vinafood 1 tasked with developing mega agri-logistics hub
Vinafood 1, Vietnam's top rice exporter, has been asked to develop an integrated hub for agricultural trade, logistics, warehousing, exports, customs, banking, irradiation, and research and development activities.
Industries - Mon, July 14, 2025 | 12:19 pm GMT+7
Vietnam conglomerate Masan to issue over 7.5 mln ESOP shares
Vietnam’s leading multi-sector conglomerate Masan Group will issue up to 7.5 million MSN shares under an employee stock ownership plan (ESOP) at a par value and issue price of VND10,000 ($0.38) apiece.
Companies - Mon, July 14, 2025 | 11:26 am GMT+7
Investment funds in Vietnam upbeat about new US tariff
With Vietnam soon reaching a trade agreement with the U.S., major uncertainties have significantly diminished, positively impacting investor sentiment in the stock market, according to investment funds.
Finance - Mon, July 14, 2025 | 9:04 am GMT+7
AI, data platform investment unlocks huge opportunities to enhance customer experience: Masan CEO
Vietnam’s leading multi-sector conglomerate Masan Group has made strong investments in AI, big data, and integrated supply chains to improve its operational efficiency, optimize costs, and better serve Vietnam’s 100 million consumers, said CEO Danny Le.
Companies - Sun, July 13, 2025 | 6:51 pm GMT+7
HCMC poised to become Southeast Asia's innovation, financial hub following merger: experts
Ho Chi Minh City, Vietnam’s southern metropolis, is expected to establish itself as a hub for finance, manufacturing, trade, logistics, and innovation in Southeast Asia, after its merger with neighboring provinces.
Economy - Sun, July 13, 2025 | 1:56 pm GMT+7
PVI Insurance honored with prestigious international awards
2025 marks a proud milestone for PVI Insurance Corporation (PVI Insurance), as it has been consecutively recognized with prestigious accolades from top-tier institutions in the Asian insurance industry.
Companies - Sun, July 13, 2025 | 1:27 pm GMT+7
Green logistics a vital condition for Vietnam firms to flourish: exec
Green logistics is not just a long-term goal but a present-day opportunity for Vietnamese enterprises to advance amid the global transition toward sustainable development.
Companies - Sun, July 13, 2025 | 12:18 pm GMT+7
- Consulting
-
Rethinking resilience: How typhoon Yagi redefines supply chain strategies in northern Vietnam
-
Remove roadblocks to lure foreign investment into Vietnam: HSBC exec
-
AI can be a game changer for Vietnam tourism
-
In trade and investment, ASEAN and China are better together
-
Investment opportunities in LNG-to-power projects in Vietnam
-
Pepper prices 2024: will the dream of 'black gold' repeat?