Understanding the VN30 Index: Investment Guide in Vietnam 2025

For a decade, the Vietnamese stock market has attracted the attention of investors from around the world due to a robust economy and investment-friendly policies. In a context where some regional markets are underperforming, the VN30 index emerges as an essential barometer reflecting the potential and strength of the Vietnamese market. Let's explore the key elements to understand before investing in this strategic index.

What is the VN30 Index?

The VN30 index represents the 30 largest companies listed on the Ho Chi Minh Stock Exchange in terms of market capitalization and liquidity. These companies account for about 70-80% of the total market capitalization of the Ho Chi Minh stock market. The index is calculated using a free-float adjusted market capitalization weighting method (Free-Floated Adjusted Market Cap-Weighted).

Composition and sectors represented in the VN30 index

According to data from July 2024, the VN30 index has a diversified sectoral distribution that provides exposure to the main economic drivers of Vietnam:

• Financial sector: approximately 25% of the index
• Real Estate: 25%
• Consumer goods: 17%
• Materials: 16%
• Industrial: nearly 10%

Among the most influential companies are:

• FPT (technology)
• Hoa Phat Group (steel production)
• Vinhomes (real estate development)
• Vietcombank ( banking services )
• Vietnam Dairy Products (Vinamilk)

Performance and attractiveness of the VN30 index

Data from 2025 shows that the VN30 index has recorded a return of 10.3% since the beginning of the year, outperforming the VNMidCap and VNSmallCap indices by 4 percentage points. This performance demonstrates the relative stability of large Vietnamese capitalizations in a volatile market environment.

The Vietnamese market presents several attractive factors for international investors:

• Attractive valuations: The VN-Index remains undervalued compared to other emerging markets.
• Reclassification Outlook: Possibility of market reclassification by major index providers
• Infrastructure Improvement: Implementation of the KRX trading system planned to enhance market reliability
• Return of foreign investment flows: Recent data shows a return of foreign investors with net purchases of 2,850 trillion VND since April 2025.

Key Factors to Watch for Investors

To assess the short-term trends of VN30, five essential indicators deserve attention:

1. Corporate Results: The results for the second quarter of 2025 indicate an average year-over-year profit growth of 14.8%, with the banking and technology sectors leading (17-20%)

2. Monetary policy: The State Bank maintains low interest rates with a credit margin of 13-14% for 2025

3. Foreign capital flows: Transition to a net purchase of 2,850 trillion VND since April 2025, with projections of net purchases of 8,000 to 10,000 trillion VND in the next six months.

4. Reevaluation of VN30: In July 2025, three stocks may be removed (VRE, DGC, BCG) with potential candidates to replace them (PDR, GVR, KDH).

5. Technical Indicators: The moving averages MA50 (1 242.50 and MA200 )1 198.30 are important support zones, while the Fibonacci level 61.8% (1 295.30 represents a critical resistance.

Investment Opportunities and Risks

The VN30 Index Futures has become the most popular and liquid futures contract in Vietnam, attracting both domestic and international investors. Data shows a significant increase in trading volumes, with an average of 164,631 contracts daily at the beginning of 2020.

However, investors must consider certain specific aspects:

• Market Regulations: The Vietnamese stock market is heavily regulated with various limitations and restrictions.
• Economic growth: Vietnam's economic fundamentals remain strong despite global challenges.
• Growing international interest: By the end of February 2025, the Ho Chi Minh Stock Exchange had 43,419 accounts held by foreign individuals and 4,649 by foreign institutions.

For investors using diversified exchange platforms, contracts on the VN30 provide effective exposure to the Vietnamese market without requiring direct investments in individual stocks.

Access Methods for International Investors

International investors can access the Vietnamese market through several channels:

• Exchange-traded funds )ETF( tracking the VN30 or other Vietnamese indices
• VN30 Index Futures: Preferred option for many international traders
• Acquisition of stakes in securities brokerage firms ) with foreign ownership limits (
• International exchange platforms offering derivative products linked to Vietnamese indices

Exchanges specialized in emerging markets generally offer the most direct and flexible access to investors interested in the Vietnamese market.