Top 10 Key Features of Vietnam’s 2024 Stock Market Landscape

The Vietnamese stock market landscape in 2024 saw some interesting developments that had a significant impact. Foreign investors net sold almost VND90 trillion ($3.53 billion), which was a big jump from the previous year. This was just one of the top highlights of the year.

Circular 68, issued by the Ministry of Finance on September 18, 2024, made some key changes that helped resolve some bottlenecks in Vietnam’s stock market. One important change was allowing foreign institutional investors to place stock orders without fully funding them upfront. This was a big step towards upgrading Vietnam’s stock market status. The circular also laid out a clear plan for publishing information in English, which was a positive move. The implementation of Circular 68 was smooth and received praise from international organizations and market ranking agencies. This change is crucial for Vietnam’s goal of upgrading its stock market status in 2025.

The VN-Index had a growth of nearly 12% in 2024, but most of this growth happened in the first quarter. The market struggled to break through the 1,300-point level for the rest of the year. This underperformance was due to external factors like the strengthening U.S. dollar and global market volatility following the U.S. presidential election. Despite solid macroeconomic growth in Vietnam, the stock market didn’t reflect the strong earnings growth of listed companies.

In March, VNDirect Securities and PVOIL were hit by cyberattacks, highlighting the need for robust cybersecurity measures as more businesses digitize their operations. On the positive side, 2024 saw a surge in capital raising by securities firms, with 22 of them issuing nearly 2.5 billion shares to raise around VND25 trillion ($981 million). This move was aimed at strengthening their financial positions and preparing for new opportunities in the market.

Several high-profile securities fraud cases came to light in 2024, with individuals involved in illegal activities related to securities trading and embezzlement. Foreign investors also played a significant role in the market, with a record level of net selling throughout the year. Their net selling reached nearly VND90 trillion ($3.53 billion) by mid-December, driven by better investment opportunities in other markets like the U.S.

The National Assembly approved a revised Securities Law in November 2024, with a focus on improving transparency and efficiency in securities issuance and trading. The new law also included regulations to combat fraud and ensure fair practices in the market. These were some of the key highlights of Vietnam’s stock market landscape in 2024.