Vietnam Stock Market 2024: Milestones, Reforms, and Resilience
The year 2024 has been full of changes and progress in Vietnam’s stock market, with key events shaping its trajectory. Let’s take a look at some of the major milestones that defined the market this year.
First off, there was a significant legislative change with the passing of amendments to the Securities Law. These changes enhance transparency in the market and increase oversight to prevent fraud, setting the stage for further growth.
Another notable event in 2024 was the adoption of non-prefunding regulations. This new regulation allows foreign investors to buy shares without upfront payment under certain conditions, which is a step towards reclassifying Vietnam as an emerging market.
On the global stage, there was progress on MSCI reclassification, where Vietnam met 10 out of 18 criteria required for an upgrade. Efforts are ongoing to meet the remaining criteria, such as foreign ownership limits and market regulations, with the hopes of advancing Vietnam’s market evaluation.
Tech stocks had a remarkable year, with many companies seeing substantial growth throughout the year. Fueled by positive industry news and partnerships, tech stocks soared, with some achieving record-breaking performances.
Foreign investors had a mixed year, with a record high net sell-off on the Ho Chi Minh Stock Exchange. The significant selling trend was mainly due to exchange rate fluctuations, highlighting the impact of external economic factors on the market.
There were also some challenges faced, such as cyberattacks on leading securities companies like VNDirect and PVOIL, highlighting the need for improved cybersecurity measures in the market.
Despite these challenges, Vietnam saw its investor accounts surpass nine million, a milestone representing a growing interest in equity investments. This strong growth sets the stage for future expansion in the market.
Overall, 2024 was a transformative year for Vietnam’s stock market, with ups and downs, but also with significant progress and milestones that paved the way for a promising future.
