VN30, the fastest rising index in Asia, why are investors worldwide seeking VN30?

Over the past ten years, the Vietnamese stock market has become a target for foreign funds from around the world due to continuous economic expansion, open investment policies, and faster growth rates compared to regional competitors. The VN30 index, representing the top 30 companies in Vietnam, has thus become a key tool for measuring the strength of the stock market, especially for major families in Thailand and other Thai investors.

What is VN30? Understand it clearly before investing

The VN30 index is a stock price indicator that tracks the movement of Vietnam’s 30 largest companies by market value and liquidity on the Ho Chi Minh City Stock Exchange (HOSE). These 30 companies collectively account for about 70-80% of the total market value, indicating that this index truly represents the status of the Vietnamese market.

The VN30 index is calculated using a Free-Float Adjusted Market Cap-Weighted method, meaning each stock’s weight depends on its market value and the proportion of shares actually circulating in the market. The three most influential stocks on the index movement are FPT (Technology), HPG (Steel), and ACB (Banking).

Industry structure of VN30: the core of investment

Companies included in the VN30 index come from various sectors of the economy, but their distribution clearly indicates investment trends:

Financial Sector (Financials) 45% – The core of the index, led by leading banks such as Vietcombank (VCB), BIDV (BID), and Techcombank (TCB), which are focused on investment.

Real Estate Sector (Real Estate) 20% – A long-term growth driver, with market leaders like Vingroup (VIC), Vinhomes (VHN), and Novaland (NVL).

Consumer Staples (Consumer Staples) 11% – Providing portfolio stability with companies like Vinamilk (VNM) and Sabeco (SAB).

Materials (Materials) 8.5% – Tracking infrastructure development, with Hoa Phat Group (HPG).

Categorization based on the Global Industry Classification Standard (GICS) helps international investors compare companies on a standardized basis.

How strict are the conditions to enter VN30?

Not just any company can join; VN30 inclusion requires passing multiple criteria:

Minimum Market Capitalization – The company must be among the top 30 by market value, collectively accounting for 80% of the total HOSE market value.

Liquidity – Stocks must have high average trading value over six months and trade on at least 80% of trading days.

Free-Float Share Ratio (Free-float) – Stocks available for trading must have at least 5% free float, excluding shares held by management or large shareholders already held.

Share Type – Only common shares are eligible; preferred shares are excluded.

Financial Health – Not listed among suspended or watchlist companies.

The index is reviewed semi-annually (Semi-annual review) to update components based on these criteria.

The actual list of 30 companies: who are the members?

The actual 30 stocks in VN30 include:

Banks: Vietcombank (VCB), BIDV (BID), Vietinbank (CTG), Techcombank (TCB), Sacombank (STB), VPBank (VPB), Asia Commercial Bank (ACB), TPBank (TPB), HDBank (HDB), Military Bank (MBB).

Real Estate: Vingroup (VIC), Vinhomes (VHN), Novaland (NVL), Phat Dat Real Estate (PDR), Khang Dien House (KDH).

Energy and Raw Materials: PetroVietnam Gas (GAS), Petrolimex (PLX), PetroVietnam Power (POW).

Retail: Vincom Retail (VRE), Mobile World Group (MWG).

Consumer Products: Vinamilk (VNM), Sabeco (SAB).

Technology: FPT Corporation (FPT).

Transportation: Vietjet Air (VJC).

Materials: Hoa Phat Group (HPG), Mesan Group (MSN).

Retail/Accounting Services: SSL Securities Corporation (SSL).

Jewelry: Phu Nhuan Jewelry (PNJ).

Project Development: Becamex IDC (BCX).

Insurance: Bao Viet Holdings (BVH).

How is VN30 different from VN Index?

Investors may confuse the VN (Country Index) and VN30 (Top 30 Companies Index). Their differences are:

VN Index – Covers all stocks on HOSE, more volatile due to inclusion of mid and small-cap stocks, reflecting the overall Vietnamese economy.

VN30 Index – Only the top 30 stocks with the highest market value and liquidity, less volatile, reflecting the trend of the largest influential stocks.

Comparison table:

What factors drive VN30?

The movement of VN30 is not random but influenced by various factors:

Domestic factors:

• Government fiscal and monetary policies, interest rate adjustments, infrastructure investments
• Performance of the 30 companies in the index
• Consumer confidence and inflation rate
• Vietnam dong exchange rate
• Political stability

External factors:

• Global economic conditions, trade wars, pandemics
• US interest rate policies (Impacting capital flows from emerging markets)
• Commodity prices (Export raw materials)
• Global trade situations

Which VN30 stocks should you choose?

Investors can select stocks according to their own style:

Vinhomes (VHN) – Price 41,750 VND, P/E 7.86, P/B 0.97
Vietnam’s largest real estate developer with numerous projects nationwide, including smart cities. Real estate growth drives the economy upward.

Vietcombank (VCB) – Price 93,000 VND, P/E 16.21, P/B 2.77
The most stable and leading bank in Vietnam, with nationwide branches and international recognition. Economic growth supports increased loans and financial services.

Hoa Phat Group (HPG) – Price 24,850 VND, P/E 14.74, P/B 1.47
Vietnam’s largest steel producer, vital for infrastructure development. Steel demand from development projects is a key driver.

Vinamilk (VNM) – Price 71,900 VND, P/E 17.41, P/B 4.44
Vietnam’s largest dairy producer, popular domestically and internationally. Rising demand for high-quality consumer products.

Why is VN30 still worth following?

Despite many challenges in the Vietnamese market, VN30 remains a target for investors seeking growth:

Vietnam’s economy continues to grow – GDP growth rates are among the highest in the region, supporting VN30.

Open investment policies – The Vietnamese government aims to attract foreign capital with investor-friendly policies.

Industry diversification – VN30 includes companies from various sectors, helping to diversify risk.

Long-term growth opportunities – Many companies in the index are still expanding or developing, with significant growth potential ahead.

Summary

VN30 is an index reflecting the trend of the Vietnamese stock market, essential for understanding investment opportunities in Asia. Covering 70-80% of HOSE’s market value, composed of 30 leading companies with high liquidity, it serves as a good representative of Vietnam’s overall economy.

Before investing in VN30, investors should clearly define their goals, time horizon, and risk tolerance. If you seek growth opportunities in emerging markets with potential and are willing to accept risks for higher returns, VN30 could be a worthwhile consideration.