Vietnam is becoming the "new dragon" of Asia - 8 stocks to watch in 2025

Why Should You Look at the Vietnamese Stock Market?

While many still think of Vietnam as a poor country, the reality is that this nation is writing an impressive success story in terms of economic development. Vietnam has a GDP growth rate of 7.09% in 2024, which is more than three times higher than Thailand’s, and US Charter Bank forecasts continued expansion of 6.7% in 2025.

What makes the Vietnamese stock market hot is its upcoming upgrade from a frontier market to an emerging market by 2025. This isn’t just about classification; it means that investment funds from around the world tracking the MSCI Emerging Markets index will need to adjust their portfolios to include Vietnamese stocks.

8 Stocks to Watch in the Vietnam Portfolio

1. VCB - Leader from the Financial Sector

Vietcombank is not only the largest bank in Vietnam but also the most valuable financial institution on the board. Comparatively, VCB is similar to Kasikornbank in Thailand — considered a must-have stock in institutional investors’ portfolios.

Confidence in VCB stems from the fact that banking access in Vietnam remains lower than in developed countries, indicating significant growth potential in loans, digital banking, and transaction services.

2. VHM - When Land Rent Turns into Profit

Vinhomes is not just a residential developer but part of Vingroup, which accounts for 2.2% of Vietnam’s GDP. It’s a giant conglomerate controlling various sectors of the Vietnamese economy.

The growth of the middle class and urbanization drive demand for quality homes and condos. Government investments in bridges, metro systems, and roads benefit VHM projects as well. This is similar to how Thai shopping centers benefit from infrastructure development.

3. GAS - Energy Still Going Strong

Petrovietnam Gas functions like Vietnam’s PTT — a large state-owned enterprise supported by the government, involved in exploration, transportation, and distribution of gas.

As Vietnam develops rapidly, energy demand surges, especially natural gas used in power plants and refineries. Despite global oil and gas price fluctuations, Vietnam’s ongoing construction of new plants keeps GAS in the spotlight.

4. VNM - Interview with Thai Milk?

Vietnam Dairy (Vinamilk) dominates the Vietnamese milk market with a valuation of $6.48 billion. For a Thai comparison, it’s like a merger of Thai-Denmark, Thai Union, and Dairyo, three times larger.

Interestingly, per capita milk consumption in Vietnam remains lower than in Thailand, indicating room for growth driven by rising incomes and increased health awareness. VNM also exports to over 40 countries, making it less dependent solely on the domestic market.

5. FPT - Vietnam’s Silicon Valley

Some analysts believe FPT could become Vietnam’s largest market cap stock within the next 10 years. This tech company leads in IT outsourcing for high-tech firms.

FPT’s strength lies in its large pool of skilled engineers with wages still lower than in developed countries. As global companies seek “centers of excellence” for AI app development and data analysis, FPT fits perfectly into this trend.

6. MSN - Vietnam’s Food Empire

Masan Group controls instant noodles (Omachi, Kokomi), seasoning sauces (Chin-su), and coffee (Vinacafe). In Thailand, this would be like a conglomerate of several leading food brands.

Additionally, MSN acquired the VinMart+ and VinMart retail chains with over 3,000 stores, enabling it to expand from manufacturing to direct consumer sales.

7. VRE - Vietnam’s Changing Shopping Centers

Vincom Retail manages leading shopping malls in Vietnam, similar to Thailand’s “Central Pattana,” but supported by Vingroup.

The consumption pattern of young Vietnamese is shifting — from just shopping to dining and leisure. Global retail brands like Zara, H&M, and Uniqlo entering Vietnam attract customers and can command higher rent prices.

8. ACV - When Airports Become Gold Mines

Vietnam Airports Corporation manages the country’s main airports, akin to Thailand’s AOT.

Before COVID-19, international tourism was booming, and post-pandemic travel demand is rebounding strongly. The real excitement is Long Thanh Airport, set to be the region’s largest, handling 100 million passengers annually. Such investment will significantly boost ACV’s future revenues.

Key Characteristics That Make This Market Promising

Economic Growth Rate: Vietnam’s 7.09% growth far exceeds its neighbors, resulting in listed companies’ profits growing by 15-20% annually.

Capital Flows: Upgrading from a frontier to an emerging market means international mutual funds will need to increase their Vietnamese holdings, expected to bring in billions of dollars.

Market Cycle: In early April 2025, the market experienced some turbulence, but investors see this as a good buying opportunity because the economic fundamentals remain strong.

How Thai Investors Can Invest in Vietnamese Stocks

Option 1: Through Thai Brokers

Open accounts with Kasikorn Securities, SCB Securities, or Bualuang Securities. The advantage is convenience, but fees are usually higher.

Option 2: Vietnamese Brokers

SSI Securities, VNDirect, HSC can be checked directly. Fees are lower, but more paperwork is required.

Option 3: Vietnamese Funds

TMB Eastspring Vietnam Equity Fund and other funds help avoid analyzing individual stocks but come with management fees.

Option 4: Online Platforms

Interactive Brokers, Saxo Bank, Tiger Brokers offer high convenience but require careful review of terms and conditions.

What’s Next?

Vietnam’s stock market is at a turning point. These 8 stocks reflect the country’s growth trends — whether in finance, real estate, energy, technology, or the burgeoning “tourist city” sector.

For Thai investors looking to explore this “new dragon,” now might be a good time, especially after the correction in early April — as visionary investors know that “muddy waters” often hide opportunities.

Investing involves risks. Be sure to study thoroughly and consult with experts before making decisions.