Is the Vietnamese stock index a worthwhile investment option? Everything you need to know about VN30

Vietnam’s stock market is becoming a focal point for global investors, especially over the past 10 years, as the country’s economy demonstrates steady growth along with investor-friendly policies. While other regional markets have not delivered outstanding returns recently, VN30, an index measuring the performance of the top 30 listed companies on the Ho Chi Minh Stock Exchange, has become a clear indicator reflecting the true strength of Vietnam’s stock market. This article will introduce everything investors should understand before managing their own funds.

What is the VN30 Index really?

VN30 Index is a tool to measure the movement of Vietnam’s stock market, based on the performance of the 30 largest and most liquid companies listed on the Ho Chi Minh Stock Exchange (HOSE).

These companies collectively account for approximately 70-80% of the total market capitalization of HOSE. The calculation uses a market cap-weighted system adjusted for Free Float (Free-Floated Adjusted Market Cap-Weighted), meaning that companies with larger market caps have more influence on the index’s movement.

Key companies driving VN30

The rise or fall of the VN30 index largely depends on three major stocks:

• FPT representing the technology sector
• HPG a leader in steel and materials industry
• ACB a significant player in the financial sector

Sector structure of the VN30 Index

Classification of stocks in the VN30 index according to the GICS (Global Industry Classification Standard), used internationally, shows the diversity of management success as follows:

Financial sector accounts for the largest share at 45%, including banks, insurance companies, and investment firms. This indicates that the financial sector is a key engine of Vietnam’s economy.

Real estate makes up 20% of the index. This sector includes property developers, shopping centers, and smart city projects.

Consumer goods accounts for 11%, comprising companies producing food, beverages, and other basic goods.

Materials and construction hold about 8.5%, including steel producers, cement, and building materials.

Criteria for selecting stocks into VN30

Entering the VN30 index is not random but decided based on strict criteria:

Market Capitalization (

Selected stocks must come from the companies with the highest market value, representing about 80% of the total market capitalization of Vietnam’s stock market, calculated by stock price times total outstanding shares.

) Liquidity ###
Companies must demonstrate high liquidity, measured by the average daily trading value over the past 6 months. Additionally, stocks should be traded regularly on at least 80% of trading days within the specified period.

( Free-float level )
Companies must have continuously tradable shares ###Free-float( of no less than 5%. Free-float refers to shares that are not restricted from trading, excluding holdings by major owners or management that are not actively traded.

) Type of Shares ###
VN30 includes only common shares (Common Shares). Preferred shares and other special types are not considered.

( Financial condition )
Companies must have sound financial health according to standards, not be suspended from trading by the stock exchange, or under special watch.

Note: The Ho Chi Minh Stock Exchange conducts a semi-annual review ###Semi-annual review( of the VN30 composition to ensure the companies remain representative of the market.

List of 30 companies in the VN30 index

The Vietnamese VN30 index includes leading companies across various sectors, such as:

Financial sector: Vietcombank )VCB(, BIDV )BID(, Vinhomes )VHN(, Techcombank )TCB(, Sacombank )STB(, VpBank )VPB(, Asia Commercial Bank )ACB(, TPBank )TPB(, HDBank )HDB(, Military Bank )MBB(

Real estate and retail: Vingroup )VIC(, Novaland )NVL(, VietinBank )CTG(, Viet Coco Properties )PDR(, Khang Dien House )KDH(, Becamex IDC )BCX(

Technology sector: FPT Corporation )FPT(, Mobile World Group )MWG(

Others: Vinamilk )VNM(, Vietjet Air )VJC(, PetroVietnam Gas )GAS(, Petrolimex )PLX(, Bao Viet Holdings )BVH(, SSL Securities )SSL(, PetroVietnam Power )POW(, Vincom Retail )VRE(, Sabeco )SAB(, Hoa Phat Group )HPT(, Mesan Group )MSN(, Phu Nhuan Jewelry )PNJ(

VN30 vs. VN Index: key differences

Many people confuse the VN index with VN30; both are indicators of the Vietnamese stock market but differ significantly.

VN )VN Index( covers all stocks listed on the Ho Chi Minh Stock Exchange, providing a comprehensive view of the entire market. However, because it includes many stocks with low liquidity, the VN index tends to be more volatile.

VN30, on the other hand, is designed to be more focused, selecting only the 30 highest-quality and most liquid stocks. As a result, VN30 is less volatile and better reflects the trend of leading stocks that influence the market.

All 30 stocks in the VN30 index are actively traded with sufficient data, making analysis and investment forecasting easier.

Factors driving or suppressing the VN30 Index value

The VN30 index value does not change arbitrarily but responds to internal and external forces:

) Domestic factors

Fiscal and monetary policies of the Vietnamese government, such as interest rate adjustments, fee changes, or budget allocations for development projects, impact investor sentiment.

Corporate profits included in VN30 are the most direct factor. When these companies report higher profits, their stock prices rise, pushing the index upward.

Inflation rate: Excessively high inflation introduces risks, reduces consumers’ purchasing power, and makes investors more cautious.

Exchange rate of the Vietnamese dong plays a crucial role in exports. When the dong weakens, Vietnamese products become cheaper globally, benefiting exporters.

Political stability: Uncertainty causes investors to seek safer assets.

External factors

Global economic environment has a huge influence. Trade wars, geopolitical tensions, pandemics, or crises can lead international capital to flee emerging markets.

US interest rate policies: When the US raises interest rates, international investors tend to repatriate funds, causing capital outflows from Vietnam.

International commodity prices: As Vietnam exports agricultural and processed goods, changes in global commodity prices directly affect national income.

Which stocks are worth investing from the VN30 index?

Choosing attractive stocks involves considering multiple factors such as performance, growth potential, and sector trends. Here are some interesting companies from the VN30:

1. Vinhomes ###VHN( – Real estate sector

Current price: 41,750 VND, P/E: 7.86x, P/B: 0.97x

Vietnam’s largest real estate developer with numerous projects nationwide, including smart cities and residential communities. Growing urbanization and housing demand underpin Vinhomes’ strong fundamentals. Long-term growth signals include expanding projects in major cities and infrastructure development.

) 2. Vietcombank ###VCB( – Financial sector
Current price: 93,000 VND, P/E: 16.21x, P/B: 2.77x

The largest and most stable bank in Vietnam, with a widespread branch network and international recognition. Vietnam’s economic expansion supports increased lending and financial services, directly benefiting leading banks.

) 3. Hoa Phat Group ###HPG( – Steel and materials sector
Current price: 24,850 VND, P/E: 14.74x, P/B: 1.47x

The largest steel producer in Vietnam, playing a key role in infrastructure, construction, and industry projects. Growing steel demand from government infrastructure projects drives company growth. Architectural trends and urban development remain key growth drivers.

) 4. Vinamilk ###VNM( – Consumer goods sector
Current price: 71,900 VND, P/E: 17.41x, P/B: 4.44x

Vietnam’s largest dairy producer, with products recognized domestically and internationally. Increasing demand for consumer goods, especially health-beneficial dairy products, is expected to promote future growth.

Summary: Who is the VN30 stock index suitable for?

VN30 index is an attractive investment option for investors seeking a market with strong growth performance and willing to accept the risks associated with emerging markets.

Before deciding to invest your funds, carefully evaluate your investment horizon, risk tolerance, and market outlook. If you have a long-term growth perspective and can accept risks, VN30 can become part of your portfolio.