Expect big changes

2025 will be a year full of potential for the Vietnamese stock market, with a combination of supportive macroeconomic policies and expectations of major changes in the legal structure and economy.

The government has set an economic growth target of 6.5-7% for 2025, and is striving to reach 7-7.5%. Although this is an ambitious target in the context of global uncertainties, policies to support the domestic economy, institutional reforms and improvements in the investment environment will be important factors promoting the development of Vietnam's stock market next year.

Macroeconomic policies support the stock market

In 2025, the Government will continue to focus on improving the quality of public investment, developing infrastructure and removing obstacles in the real estate sector, while encouraging commercial banks to maintain low interest rates to support businesses. These are important policies that not only help stabilize the macro-economy but also create favorable conditions for investment activities, especially for businesses listed on the stock market.

Along with that, the revised laws, including the Investment Law, Public Investment Law, Securities Law and Electricity Law, will officially take effect from 2025. These changes are expected to create a more favorable investment environment, especially in the context of Vietnam's economy deeply integrating with the world and needing clear legal regulations to attract investment capital flows.

One of the important factors for the Vietnamese stock market is the goal of upgrading the stock market from a frontier market to an emerging market. This is an important step that not only helps increase market value but also opens up opportunities to attract foreign capital into the Vietnamese stock market. This upgrade is expected to take place in 2025, when international capital continues to look for potential markets to replace China in the context of increasing trade tensions between the US and China.

Regarding interest rates and exchange rates, in the context of early 2025, the Vietnamese stock market will face some pressure from the strengthening of the USD and high interest rate policy in the US. However, although the exchange rate may be under pressure in the early stages of the year, the current valuation of the Vietnamese stock market is still very attractive, with the P/E ratio forecast to decrease to about 10 times by 2025. This valuation is considered very reasonable and has high profit potential.

Foreign capital flow prospects and strategy for 2025

Vietnam is currently one of the fastest growing economies in the world. With a number of supporting macroeconomic factors such as a young population structure, rapid urbanization, and the ability to deeply participate in the global production chain, the Vietnamese economy is expected to continue to maintain stable growth in the coming years. This is an important factor that helps strengthen the confidence of foreign investors in the Vietnamese stock market.

Although foreign investors have been net sellers in Vietnam's stock market due to high interest rates and a strong USD in 2024, foreign investors have maintained a special interest in the Vietnamese market. Foreign funds in Vietnam in 2024 have achieved returns of 15% or more, showing that despite some market difficulties, they can still bring attractive returns to investors.

It is forecasted that in 2025, foreign capital will return to the Vietnamese stock market, thanks to expectations of upgrading the market to the emerging market group. This will create great opportunities for international investment funds to continue to disburse into listed stocks in Vietnam, especially when the economic indicators and current market valuations are attractive.

For individual investors, 2025 will be an ideal time to build a long-term investment strategy with a focus on businesses with solid foundations and stable growth prospects. In particular, investors need to pay attention to the business's executive team, because a leadership team with vision and capacity will be an important factor for the business to develop sustainably.

For non-professional investors or those who do not have time to monitor the market, investing in professional open-end funds can be a reasonable choice. Funds have demonstrated impressive profitability over the years and can deliver superior returns compared to the VN-Index. VinaCapital's open-end equity funds, for example, have achieved returns of 22% to 34% in 2024, far exceeding the growth of the VN-Index. Among them, VINACAPITAL-VMEEF fund leads the entire open-end fund market in terms of returns, reaching 34% in 2024.

Source: https://baodautu.vn/chung-khoan-viet-nam-nam-2025-ky-vong-nhung-thay-doi-lon-d241805.html