Vietnam Stock Market Outlook 2024: Milestones, Reforms, and Resilience

2024 was a big year for Vietnam’s stock market, with lots of changes and developments that are worth highlighting. Let’s take a look at ten key events that have shaped the market over the past year.

First off, in November, Vietnam’s National Assembly passed some important updates to the Securities Law. These changes are designed to make the market more transparent and crack down on fraud, which is great news for investors.

Another significant move was the adoption of regulations that allow foreign investors to buy shares without paying upfront in certain cases. This step brings Vietnam closer to being classified as an emerging market, which could mean big things for 2025.

In June, MSCI upgraded Vietnam’s ‘transferability’ criterion, meeting most of the criteria needed to become an emerging market. Efforts are now focused on enhancing the remaining criteria to secure this upgrade, which would be a huge win for the country’s market evaluation.

Tech stocks had a great year, with impressive performances from companies like FPT Corporation. There were also some challenges, like foreign investors selling off a record amount of shares, largely due to exchange rate fluctuations.

Cyberattacks hit some big players in the market, like VNDirect and PVOIL, highlighting the need for stronger cybersecurity measures across the board.

Despite some bumps in the road, Vietnam surpassed its goal of nine million investor accounts, showing a growing interest in equity investments among the public.

High-profile scandals involving firms like Tan Hoang Minh and FLC exposed some serious issues with corporate governance. These cases led to calls for stricter regulations to prevent similar incidents in the future.

On a positive note, the corporate bond market bounced back in a big way, with lots of new issuances and increased transparency to boost investor confidence.

Overall, 2024 was a year of growth and change for Vietnam’s stock market, with lots of ups and downs along the way. It will be interesting to see how these developments shape the market in the coming years.