Vietnam is becoming the focus of global investors as many indicators show outstanding momentum compared to the Asian market in general. VanEck Vietnam ETF (VNM) has increased by about 62% since the beginning of 2025. VN-Index has increased to 38% - the increase in the highest group in the region.
Vietnam is really standing firm. There are many attractive emerging markets, and Vietnam is a rising star, said Ms. Thea Jamison - CEO of Change Global.
After a sharp decline in 2022, the Vietnamese stock market has recovered beyond pre-pandemic levels. Private investors play a leading role, contributing to creating large liquidity with an average trading value of 2 billion USD per day at one point. Ms. Jamison believes that the valuation is still super cheap compared to the US and the market is growing based on internal strength, not dependent on foreign capital.
The confidence momentum continued to be strengthened after FTSE Russell announced in October to upgrade Vietnam from the frontier market to the secondary emerging market, effective from September 21, 2026. This decision comes from a series of reforms, especially Vietnam's elimination of the pre-transaction payment requirement for foreign investors.
VinaCapital forecasts that the upgrade could bring in an additional 5-6 billion USD in foreign capital, but Vietnam needs to continue to reform more deeply to strengthen its emerging market position, including improving foreign investor access, diversifying the industry and increasing the number of quality IPO enterprises.
Entering 2026, the market picture is expected to be more stable. VinaCapital forecasts that corporate profits may increase by about 15%, leading to the possibility of the market achieving a profit of 15-20%.
Growth momentum does not only come from stocks. Vietnam has implemented many reforms to create an open business environment, focusing on Resolution 68 issued in May, focusing on supporting the private sector by reducing procedures and increasing access to capital.
In addition, the Government is continuing to amend the Land Law - effective from 2024 - to remove obstacles in site clearance, thereby promoting real estate and infrastructure projects.
New reforms continue the journey of opening up the economy that began with the Doi Moi 1986 project, taking off strongly since the mid-1990s when the US lifted the embargo (1994) and normalizing relations (1995), then joining the WTO in 2007.
Vietnams economic development over the past decades has been a miracle, said Daniel Kritenbrink, a partner at The Asia Group and former US Ambassador to Vietnam.
FDI disbursement in the first 10 months of the year reached 21.3 billion USD - the highest in 5 years for the same period, according to the General Statistics Office. Cranes are operating everywhere. This economy is booming, Jamison said.
According to Dragon Capital, a young, large workforce, high participation rate and quick adaptability help Vietnam dominate the global production chain, especially in garments and electronics. Vietnam also promotes improving the quality of human resources through investment in education, digital skills and vocational training - a key factor to maintain attractiveness to investors.
In terms of trade, Vietnam has actively expanded relations to reduce dependence on a single market in the context of the US imposing countervailing tariffs. However, global geopolitical tensions and exchange rate fluctuations may continue to make investors cautious. However, with reform, internal dynamics and a changing economic structure, Vietnam is considered one of the most notable growth stories in Asia in 2025 and still has much room for breakthrough.
