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
Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout
Authorities in the central province of Quang Tri are evaluating a proposal from Power Generation JSC 1 (EVNGENCO 1), a subsidiary of state utility Vietnam Electricity (EVN), to take over the Quang Tri thermal power plant project, following the withdrawal of Thai investor EGATi.
Energy - Tue, September 16, 2025 | 1:44 pm GMT+7
Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers
Amata VN, the Vietnam arm of Thailand’s leading industrial park developer Amata, has approved a plan for its subsidiary Amata City Long Thanh Urban JSC (ACLT) to sell its remaining 51% stakes in two entities to local developer Novaland-linked buyers.
Real Estate - Tue, September 16, 2025 | 12:19 pm GMT+7
Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister
Vietnam has fulfilled the criteria for a stock market status upgrade by FTSE Russell through reforms aimed at facilitating foreign investment inflows into its market, said Minister of Finance Nguyen Van Thang.
Economy - Tue, September 16, 2025 | 9:36 am GMT+7
Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry
The Ministry of Finance is proposing a key reform that would allow commercial banks to invest in and distribute mutual fund certificates, as part of a broader plan to restructure the investor base and foster the development of Vietnam’s fund management industry.
Finance - Tue, September 16, 2025 | 8:00 am GMT+7
E-commerce boom a major driver of Vietnam's packaging paper industry growth
Vietnam's paper packaging industry is entering a period of strong growth, with an average annual growth rate forecasted at 10% until 2030.
Companies - Mon, September 15, 2025 | 10:20 pm GMT+7
Vietnam needs support from UK in developing international financial center: Deputy PM
Permanent Deputy Prime Minister Nguyen Hoa Binh has called on the UK and the City of London to continue supporting and accompanying Vietnam in promoting and introducing its international financial center (IFC).
Finance - Mon, September 15, 2025 | 10:12 pm GMT+7
Vietnam enforces 8% capital adequacy ratio for banks from Sept 15
Commercial banks and foreign bank branches in Vietnam must maintain a minimum capital adequacy ratio (CAR) of 8%, including at least 4.5% in Tier 1 core capital and 6% in Tier 1 capital, starting from September 15.
Banking - Mon, September 15, 2025 | 10:04 pm GMT+7
Tool for wood traceability management debuts in Vietnam
The Vn-WoodID application has been officially launched in Vietnam, becoming a key tool contributing to wood traceability.
Companies - Mon, September 15, 2025 | 10:00 pm GMT+7
Sun Group, US Embassy foster aviation-hospitality cooperation
Sun Group, in collaboration with the US Embassy in Vietnam, hosted the US – Vietnam Aviation Partnership Roundtable on September 12, bringing together 15 leading American corporations in aviation, technology, and financial services, opening up opportunities to position Phu Quoc as a new aviation and tourism hub in the region.
Companies - Mon, September 15, 2025 | 9:54 pm GMT+7
Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1
Vietnam remained the largest overseas market for Thailand’s Siam Cement Group (SCG) in the first half of 2025, contributing 9% of consolidated sales.
Companies - Mon, September 15, 2025 | 8:10 pm GMT+7
Central Vietnam to have new airport Mang Den
Procedures to adjust Vietnam's airport system planning, including the addition of Mang Den Airport in central Vietnam, are being proceeded, according to the Ministry of Construction.
Infrastructure - Mon, September 15, 2025 | 5:16 pm GMT+7
Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital
The Vietnamese Government has advanced the regulation of digital assets, with a resolution launching a five-year pilot framework for issuance and trading. This framework signals the Government’s intent to position the country as a regulated hub for digital assets in Asia, which could attract new capital inflows, write Dragon Capital analysts.
Economy - Mon, September 15, 2025 | 2:20 pm GMT+7
Agribank introduces sizable $4.17 bln preferential credit package
Right from the beginning of 2025, Agribank launched a substantial preferential credit package worth VND110 trillion ($4.17 billion) to support individual customers.
Companies - Mon, September 15, 2025 | 1:32 pm GMT+7
'Precious space' in Vietnam's monetary policy
The Federal Reserve's continued cuts in 2025, with the most recent in September, are considered a valuable policy "space" for the State Bank of Vietnam (SBV) to maintain low interest rates to support growth without having to worry too much about exchange rates.
Economy - Mon, September 15, 2025 | 10:15 am GMT+7
Vietnam’s central bank sells $1.5 bln to stabilize currency: broker MBS
The State Bank of Vietnam (SBV) intervened in the foreign exchange market by selling approximately $1.5 billion via 180-day cancelable forward contracts from August 25-26, in an effort to ease pressure on the Vietnamese dong, according to a recent report by MB Securities (MBS).
Banking - Mon, September 15, 2025 | 8:04 am GMT+7
Hanoi aims to break ground on $11.4 bln Red River Boulevard & Landscape project by Jan 2026
A consortium of “tunnel king” Deo Ca Group and real estate developer Van Phu Invest has been assigned by the Hanoi People’s Committe to prepare an investment proposal for the VND300 trillion ($11.37 billion) Red River Boulevard & Landscape project.
Real Estate - Mon, September 15, 2025 | 7:55 am GMT+7
- Consulting
-
Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital
-
The ASEAN trade puzzle: Smart moves in a shifting landscape
-
Vietnam’s breakthrough opportunity against world-wide US tariff wave
-
Trump trade mayhem to steepen yield curve and weaken US dollar
-
Navigating tariff shocks: Vietnam’s path forward through diversification
-
Southeast Asia IPO performance in Jan-June