It’s clear that the Vietnamese stock market is truly drawing the attention of investors worldwide, and the VN30 index is the best representative for showcasing the strength of this market. Meanwhile, the Thai stock market itself has underperformed compared with its neighbors. Even so, the VN30 index—which includes Vietnam’s top 30 listed companies—still continues to demonstrate tremendous potential.

What exactly is it? The VN30 index reflects the price movements of the 30 largest and most liquid stocks on the Ho Chi Minh Stock Exchange. An interesting point is that these stocks account for approximately 70-80% of the total market capitalization. The calculation uses the Free-Floated Adjusted Market Cap-Weighted method, which means that the proportion is based on the actual market value available for trading.

The composition is also intriguing. VN30 stocks include companies from multiple industries. The financial group (banks) holds the largest share at 45%. Next is the real estate group at 20%, consumer goods at 11%, and construction materials at 8.5%. Notably, the stocks that most influence index movements include FPT (technology), HPG (steel), and ACB (banks).

To be included in the VN30 index, companies must meet strict criteria. They must have a market capitalization high enough to make up 80% of the total market value. Liquidity must be high enough, as measured by average daily trading value over the past 6 months. Stocks must be traded continuously on no less than 80% of trading days. Free-float must be greater than 5% to ensure there are shares that can actually be traded. In addition, companies must be common stocks (not preferred shares), and must have stable financial conditions—not be listed for warning or have trading suspended. The VN30 index review is carried out twice a year.

When you look at the stock names included in the index, you can see familiar names such as Vietcombank (VCB), the largest bank; Vinamilk (VNM), a leading dairy producer; Vingroup (VIC), a diversified conglomerate group; BIDV (BID), a state-owned enterprise bank; Vinhomes (VHN), a real estate developer; FPT (FPT), a technology company; and many others.

Why is VN30 still interesting? Vietnam’s economy continues to grow strongly—it is one of the fastest-growing countries in the Asia region. The Vietnamese government also continues to introduce policies that support foreign investment. The VN30 index is diverse enough to allow investors to diversify risk, and many companies within the index are still in the early stages of growth.

Compared with the VN index, which covers all stocks in the market, the VN30 index is more selective. It covers only 30 leading stocks. The VN index is more volatile, but the VN30 index better reflects the overall picture of large-cap, highly liquid stocks.

The movement of the VN30 index is influenced by many factors, both within and outside the country. Vietnam’s monetary and fiscal policies, the companies’ performance, inflation rates, exchange rates, and political uncertainty all have an impact. Externally, the global economic situation, the United States’ interest rate hikes, and world commodity prices also affect capital inflows and outflows.

If we talk about interesting stocks within the VN30 index, Vinhomes (VHM) in the real estate sector is undertaking large-scale projects nationwide. Its P/E is 7.86, which appears lower than Vietcombank (VCB), a bank with high stability and a P/E of 16.21, which remains a reliable option for long-term growth. Hoa Phat Group (HPG), a leading steel producer, with a P/E of 14.74, benefits from infrastructure development projects. Vinamilk (VNM) in the consumer goods sector, with a P/E of 17.41, benefits from the continuously rising demand for consumer products.

In summary, the VN30 index offers attractive investment opportunities for those looking for a high-growth stock market and are willing to accept the risks that may come with it. Before making an investment decision, it’s important to carefully evaluate your goals, investment timeframe, and the level of risk you can tolerate.