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The stock market in Vietnam: The spotlight during the toughest year

by Asia Insider

It was such a chaotic year in 2021. Many things broke down due to the heavy impact of COVID-19. The economy of Vietnam struggled to fight against the crisis.

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.

How to get started in the Vietnamese Stock Market

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.

Source: Vietnam Insider

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