How to invest in Vietnam stocks: Benchmark valuations hit decade lows prompting investors to bet on rebound
Vietnam’s stock market has evolved into one of Asia’s most closely watched emerging markets.
Market structure and infrastructure
The Vietnamese stock market now exceeds 11 million active investor accounts, a record reflecting growing domestic participation. Recent system upgrades, including the launch of the KRX trading platform in May 2025, have improved trading efficiency, transparency and settlement capacity – steps that support Vietnam’s path toward potential MSCI Emerging Market inclusion by 2030.
Vietnam’s role as a manufacturing hub
Vietnam continues to strengthen its position as a global manufacturing centre, particularly amid ongoing Sino–US tensions and the lingering effects of China’s zero-Covid policy.
Multinational companies including Apple, Nike and Samsung have expanded production capacity in Vietnam, seeking to diversify their supply chains and reduce exposure to geopolitical risk.
In 2025, Vietnam’s GDP grew by 8.23% in the third quarter, driven by a 10% year-on-year increase in industrial output and record-high foreign direct investment (FDI) of $18.8bn in the first nine months of the year. This underlines continuing international confidence in Vietnam’s long-term economic trajectory.
Vietnam stock market performance: rise to record highs
The VN-Index closed at 1,641 on 6 November 2025, down 0.86% from the previous session. Despite short-term volatility, the benchmark remains up 30.2% year-on-year, placing Vietnam among Asia’s top-performing markets.
Earlier in 2025, the VN-Index reached an all-time high of 1,794.58 in October before entering a period of consolidation. Benchmark valuations, measured by the price-to-earnings (P/E) ratio of 20.57 (as of 5 November 2025), sit above the five-year average of 12.73–18.97, suggesting that while valuations have risen, expectations for growth remain strong.
The Vietnam All Share Index (USD) returned 28.4% year-to-date as of November 2025, reflecting resilient market performance supported by active domestic participation and steady foreign inflows.
Past performance is not a reliable indicator of future results.
Foreign ownership limitations in Vietnam
Vietnam remains one of Asia’s fastest-growing economies, supported by political stability, competitive labour costs and ongoing structural reforms. The government continues to encourage foreign investment through trade agreements and infrastructure upgrades, while maintaining certain restrictions on foreign ownership.
Foreign ownership caps – typically 49% for listed domestic companies – remain a key structural feature of the market. Some sectors allow higher or lower limits depending on strategic importance. Once the threshold is reached, foreign investors may only gain exposure indirectly through specialised funds or derivatives.
How to invest in the Vietnam stock market: key concepts
To gain exposure to Vietnam’s equity market, investors often refer to the FTSE Vietnam Index Series, composed of the FTSE Vietnam All-Share Index and the FTSE Vietnam Index.
The All-Share Index tracks the top 90% of companies listed on the Ho Chi Minh Stock Exchange (HOSE) that meet the eligibility requirements, while the FTSE Vietnam Index includes companies with sufficient foreign ownership availability. Constituents are reviewed quarterly to reflect market changes and regulatory limits.
Stocks
Foreign investors can purchase shares directly through a local brokerage account, which requires opening a Vietnamese bank account and obtaining a securities trading code.
Alternatively, exposure can be gained via listed investment vehicles such as the VinaCapital Vietnam Opportunity Fund (VOF) or Vietnam Enterprise Investments (VEIL), both of which hold significant stakes in Vietnamese companies.
Index funds
For simpler access, exchange-traded funds (ETFs) tracking the FTSE Vietnam All-Share or FTSE Vietnam Index provide diversified exposure while automatically adjusting for ownership restrictions. These passive products remain a practical option for international investors seeking regulated access to Vietnamese equities.
How to trade Vietnamese equities using CFDs
Contracts for difference (CFDs) allow traders to speculate on price movements of Vietnamese indices or funds without owning the underlying assets. CFDs are traded on margin, meaning traders can open larger positions with smaller deposits. However, leverage magnifies both potential gains and losses.
For example, Capital.com offers CFDs on the VinaCapital Vietnam Opportunity Fund (VOF).
Traders must maintain sufficient funds to avoid margin calls and should be aware that overnight fees and leverage risks make CFDs more appropriate for short-term trading strategies.
Key risks associated with Vietnamese equities
Foreign ownership limits remain a primary risk, as they can restrict market access and create valuation disparities between investable and non-investable stocks.
Vietnam remains classified as a 'Frontier Market' by MSCI, although it gained FTSE Russell’s Emerging Market status in late 2025. This milestone highlights progress in market development but also ongoing challenges in liquidity and regulatory transparency.
Broader risks include macroeconomic shifts, currency volatility and global market sentiment, alongside domestic factors such as policy changes and governance standards. Investors should monitor indicators including inflation (targeted at 4.5% in 2025) and exchange rate movements.
Final thoughts
Remember that past performance does not guarantee future results, and markets can be volatile in the short term. Always conduct independent research before deciding how to gain exposure to Vietnam’s evolving economy.
FAQ
What’s the best way to invest in Vietnam stocks?
Index funds and exchange-traded funds (ETFs) are among the most accessible ways for foreign investors to gain exposure to Vietnam’s equity markets, particularly given the foreign ownership restrictions on individual Vietnamese companies.
The most appropriate method depends on your financial goals, experience and risk tolerance.
Is it safe to invest in Vietnam stocks?
All investments carry risk. Vietnamese equities can be affected by macroeconomic conditions, regulatory changes and company-specific developments. Investors should consider their objectives, understand the risks involved and conduct independent research before committing capital. It’s important to remember that past performance doesn’t guarantee future results, and you should never invest more than you can afford to lose.
How can a foreigner invest in the Vietnam stock market?
Foreign investors can access Vietnam’s stock market in several ways. They may open a local brokerage and bank account in Vietnam or invest through internationally listed funds and ETFs that track Vietnamese indices such as the FTSE Vietnam All-Share Index or the FTSE Vietnam Index. Foreign ownership limits apply and can vary by sector. Prospective investors should review current regulations and ensure they understand market access rules before participating.