Record trading value signals rising domestic confidence, even as foreign capital pulls back

A powerful wave of domestic capital is reshaping Vietnam’s equity market, sending trading activity to its highest level in three months and underscoring a structural shift in who is driving Southeast Asia’s fastest-growing stock market.

Trading value on the Ho Chi Minh City Stock Exchange surged to nearly 46 trillion VND (around USD 1.8 billion), up 10% from the previous session and marking the fourth consecutive day of rising liquidity. According to analysis from SSI Securities, the rebound reflects easing interest-rate pressure compared with late last year, prompting local investors to reallocate capital from deposits into equities.

Capital inflows were heavily concentrated in large-cap and market-leading stocks, particularly in banking, securities, consumer goods, and heavy industry. Thirteen stocks recorded trading value above 1 trillion VND, led by SSI with nearly 1.93 trillion VND in matched orders, followed by Vinamilk and Vietcombank. The concentration suggests that domestic investors are positioning selectively rather than chasing broad-based momentum.

Despite strong liquidity, the VN-Index showed signs of fatigue after an early-week rally. The benchmark briefly touched a record high of 1,918 points before reversing course, fluctuating sharply throughout the session and closing down more than 8 points at 1,894. Heavy selling pressure in Vingroup-linked stocks proved decisive: Vingroup, Vinhomes, Vinpearl, and Vincom Retail all fell between 2.5% and 5.7%, collectively shaving 22 points off the index. Excluding this group, the market would have remained in positive territory.

Sector performance highlighted growing divergence beneath the headline index. State-owned banks such as BIDV, Vietcombank, and VietinBank continued to climb, while private lenders including VPBank, HDBank, Techcombank, TPBank, and VIB came under notable pressure. A similar split appeared in brokerage stocks, with leaders such as SSI and HSC advancing, while several mid-tier names declined.

One of the few consistently positive pockets was energy. Oil and gas stocks including Petrolimex, PV Oil, and PVC hit daily limits with no sellers, while PetroVietnam Gas, BSR, and PVS posted solid gains. The move reflects growing investor interest in Vietnam’s energy security and infrastructure expansion amid regional volatility.

Foreign investors, however, continued to move in the opposite direction, extending a net-selling streak of roughly 450 billion VND. Outflows were concentrated in real estate names, reinforcing the view that global funds remain cautious on Vietnam’s property cycle even as local money grows more confident.

The bigger story for global investors is not a single down session, but the changing balance of power in Vietnam’s capital markets. With domestic liquidity surging and increasingly shaping price action, Vietnam is becoming less dependent on foreign flows—a shift that could make the market more resilient, but also more selective, in the next phase of its growth cycle.

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Source: Vietnam Insider

But there was one thing that withstood the storm: The Vietnamese stock market. Despite many downward movements, The stock market of Vietnam was showing the opposite. It rose so strong it almost reached the all-time peak. It reinforced the stability of the economy and helped the country leap out of chaos to once again, recover from the damage that the country had to suffer.

The positivity during the rough period

During the last trading session of 2021, the color green started to appear again. The VN-index received 12 points on the 31st of December, reaching 1.498,28 points, which is equivalent to the total increase of almost 395 points in the whole year. Such a score almost caught up with the all-time high (1.500,81 points) which means a +43% performance of the 30 top stocks of Vietnam.

It’s also pointed out that Vietnam is currently having 52 businesses with a market capitalization of over one billion dollars. Vietcombank, Vingroup, and Vinhomes are now the top 3 that are above the 10 billion dollars capitalization cap.

The 5 impressive stats of the securities industry

VN-index reached 1.500 points (an all-time high) despite the severe impact of COVID-19. The year 2021 ended with 1498 points.

The average price per trading session is 26.560 billion VND, which is 258% higher compared to last year. Solely on the 19th of November, the number went up to 56.100 billion VND.

The market capitalization grew strong, reaching 7.7 million dollars until the 28th of December, which is relevant to the increase of 46% within 2021. Such a number is close to the 123% GDP in 2020.

The mobile capitalization reached 444.940 billion VND in the first 11 months of 2021, going up by 23% percent compared to last year.

11 million new accounts were opened within the 11 months of 2021, making the total 4 million accounts, which is 4% of the total population. (Considering how unpopular the securities industry in Vietnam is to the Vietnamese, this is more than impressive. It shows that more people are now paying attention to the potential of this investment channel).

>> Related article : Invest in the Vietnam Stock Market for foreigners : is it a good idea ?

All these combined have created rich liquidity for the stock market since the cash flow keeps going in and out of the market. Such a movement has created a busy industry that will potentially be the main key to the well-being of Vietnam.

The securities industry is now one of the most important channels for capital mobilization.

If you’re curious about the market, go check the previous video to learn more about :

• record performance of +43% of the VNindex in 2021;
• low P/E of listed companies ratio compared to other countries in the region;
• things to know before buying your first stock on the Vietnamese stock market;

If you wish to get started and invest into the Vietnamese stock market, feel free to get in touch with us by filling the form on this page so we can share with you some insights, tips and guidance to get started in your investment journey.

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Source: Vietnam Insider

For the more advanced readers … is your way of building a diversified portfolio accurate?

The short answer is “Yes”, the long answer is “Probably”. There is no right and wrong in the way you build an effectively diversified portfolio. It depends on which direction you want to go and what you have to make a “diversified” portfolio.

Since everything about the diversification of a portfolio varies, it’s a large area to cover. Therefore, I hope that a few suggestions in this article will help you visualize better the right ways to diversify your portfolio.

For me, the four important opponents to create a diversified portfolio are:

Focusing on different sectors

You may not want to invest in only one single stock or sector when you’re looking to ensure your financial security. There are times when buying six stocks in one industry can damage your asset badly due to the lack of diversification. If the sector is doing great during a period, all the six stocks will profit which is good news.

However, the chance for such a thing to happen is very unlikely. The market can adjust unexpectedly due to a lot of factors. Therefore, you may win it all. But at the same time, you may lose it all as well.

In this video, you will learn about :

• What are the common myths of managing personal savings and investment?
• What’s the difference between day trading and long-term trading?
• How to build a cost-effective diversified portfolio?
• What to do next after having a stable and diversified strategy ?
• How to include future cryptos and NFTs in a long-term strategy ?

Therefore, the best move to carry out is to invest in stocks of different sectors (For example Technology, Pharmaceuticals, manufacturing, etc) to balance between loss and profit. If one sector falls, there will be others sectors to back you up which increases the possibility to earn more profits.

Bonds

Bonds is another fascinating option if you look forward to diversifying your portfolio. Bonds are known to offer a regular interest. Also, they contain fewer unexpected risks compared to stocks. Therefore, bonds seem like a good solution for those who want to stabilize their base on the safety aspect of investment. However, everything contains both advantages and disadvantages. Even though bonds are safer to invest in, their long-term returns are also less than stocks investment.

Therefore, if you’re someone who prefers safety to growth, bonds are the choice for you. There’s one thing worth noticing is that you can receive higher returns by buying international bonds or high-yield bonds. However, that also comes with a higher rate of risk.

International stocks

As cosmetic stocks may have certain restrictions, buying international stocks helps solve the problem which builds up a sustainably diversified portfolio. However, international stocks also include higher risks because it provides higher potential returns.

Alternative investments

There are also other alternatives to invest in if you want to diversify your portfolio. Alternative investments include investing in real estate, venture capital, hedge funds, commodities, and what most people have been showing much interest in: Cryptocurrency.

In the commodities section, you can choose to invest in natural resources such as oil and gold. Gold is the most popular form of alternative investment because it is proven to rise in value after 15 days of a crash. Moreover, it’s one of the few options that you could apply to defend against inflation.

And more helpful sharings about building a diversified portfolio in the video above that should be handy for your upcoming journey. I hope this basic information aids your expectation for a better diversification plan

To learn more about diversified investment strategies as well as the perspective of an expatriate living in Vietnam, you can have a look at this in-depth guide for expats as well as download for free my book highlighting the 7 mistakes I made while living in Asia about business, long-term residence and investments.

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Source: Vietnam Insider