Vietnam's benchmark VN-Index hits three-month low as broad sell-off grips market

A wave of selling pressure sent the VN-Index down nearly 44 points on Monday, breaking below the 1,750-point threshold to its lowest level in more than three months.

Following the sharp decline, Maybank Securities Vietnam (MSVN) shifted its market strategy to a “defensive” stance, while analysts said the drop was largely a technical and sentiment-driven correction.

VN-Index posts biggest decline in more than three months

Vietnam’s stock market opened the week with a broad-based sell-off as selling pressure intensified from the start of the session and continued to widen throughout trading hours. Red dominated nearly all sectors, dragging VN-Index down by more than 53 points at one point before bargain hunting helped narrow losses toward the close.

At the end of trading on Monday, VN-Index fell 43.94 points, or 2.46%, to 1,743.51, its lowest level in more than three months and below the key psychological mark of 1,750 points. It was also the benchmark’s steepest single-day decline since early April.

The VN30-Index, which tracks the 30 largest listed companies, dropped 44.33 points, or 2.29%, to 1,887.32. The HNX-Index declined 7.29 points, or 2.5%, to 284.41, while the UPCoM-Index lost 1.04 points to close at 126.34. HNX stands for the Hanoi Stock Exchange, while UPCom is the unlisted public company market.

Market breadth was heavily skewed toward sellers. On the Ho Chi Minh Stock Exchange (HoSE), 312 stocks fell, including 33 that hit their daily floor limits, while only 46 stocks gained and just one reached the ceiling price.

Liquidity remained elevated, with nearly VND21.18 trillion dong ($805.36 million) traded across the three exchanges, equivalent to nearly 966 million shares changing hands. Matching transactions accounted for nearly VND19.27 trillion ($732.65 million), while negotiated deals stood at over VND1.91 trillion.

The session showed that selling pressure was no longer confined to individual sectors but had spread across the broader market, reflecting investor caution after several technical support levels were breached.

Selling pressure was concentrated in three major market-leading sectors: securities, banking and real estate.

In the brokerage sector, VIX, CTS, FTS, VDS and BSI all hit the floor price. Large-cap securities firms including SSI, VCI and MBS also dropped between 5% and 7%.

Banking stocks were also hit broadly, with SHB falling by the maximum daily limit. BID, TCB, CTG, MBB, VPB and VCB all declined more than 3%, while LPB was among the few gainers, rising 1.13%.

In real estate, DIG, DXG, DXS and HDC all hit the floor price, while TCH dropped nearly 7%. Major property developers including VHM, VRE, PDR and KDH also suffered steep losses.

Selling pressure extended to the materials sector, with HPG and HSG both losing nearly 6%, while DCM and DPM closed below their reference prices. In retail and consumer stocks, MSN fell 4.71%, PNJ dropped 4.65%, and MWG declined nearly 2%. GEX, CII, VCG and VSC all lost more than 6%.

In terms of index impact, VCB was the biggest drag on the VN-Index, followed by VHM, BID, TCB and HPG. On the positive side, LPB provided the largest support but contributed only around 0.39 points. VJC, SAB and FPT remained in positive territory but were not enough to offset losses from large-cap stocks.

VN-Index decline seen as technical correctionFollowing the sharp sell-off, Maybank Investment Bank Vietnam (MSVN) downgraded its market strategy recommendation to a “defensive” stance.

According to MIBG Research’s quantitative analysis system, the overall market trend remained neutral, but trend quality stood at 84/100. Meanwhile, money flow participation fell to 14/100 and individual investor trading activity stood at 15/100. At the same time, all three technical indicators — MACD, MFI and RSI — moved into negative territory.

MSVN identified the VN-Index’s nearest support level at 1,760 points, followed by 1,710 points, while resistance levels were seen at 1,805 points and 1,865 points.

From another perspective, Vo Diep Thanh Thoai, head of premium clients at DNSE Securities, said the sharp market decline was mainly driven by valuation concerns and investor sentiment rather than a deterioration in market fundamentals.

“This was one of the strongest corrections in the market since the beginning of 2026, considering VN-Index’s decline, market breadth and the contraction in market capitalization. Selling pressure was widespread, particularly among large-cap sectors such as banking, real estate and securities, which carry significant weight in the index. Liquidity also remained high, showing that this was not simply a lack of buying interest but active selling pressure from multiple groups of investors,” Thoai said.

He said profit-taking after a strong rally was understandable. Once VN-Index lost key support levels, technical selling pressure and margin reduction accelerated the decline. In addition, weaker developments in global financial markets also contributed to domestic investor sentiment.

“I still believe this is more of a technical and sentiment-driven correction rather than a fundamental shift. Supporting factors such as economic growth, interest rate conditions and the earnings outlook of listed companies have not changed significantly,” Thoai said.

According to the analyst, the biggest impact following the sharp decline was on investor sentiment, making capital deployment more cautious and potentially affecting corporate fundraising activities in the short term.

However, he said money would not completely leave the market but would likely rotate toward companies with stronger fundamentals and more attractive valuations.