Econ
Vietnam benchmark Vn-Index tops world's fastest growing indexes
The impressive growth rate of Vietnam`s stock market is thanks to strong growth recorded in the fourth quarter of 2017 and first quarter of 2018.
Over the past one year (from October 2017 to date), Vietnam's benchmark Vn-Index is the world fastest growing index in the world at 13.87%, standing above Nasdaq, Russell 3000 or S&P 500, according to the Indexq website.
This is despite the fact that the VN-Index has kept sliding on the rise of selling pressure, according to the Bao Viet Securities Company (BVSC). On the Hanoi Stock Exchange (HSX), the Vn-Index fell during the trading session on October 24 before settling at 922.73 points, down 16.95 points or 1.8% compared to the previous session and nearly 20% of its peak recorded in early April.
The impressive growth rate of Vietnam's stock market is thanks to strong growth recorded in the fourth quarter of 2017 and first quarter of 2018. During these period, Vn-Index had soared from 820 points to its record high of 1,200 points, coming on the back of positive macro-economic factors, possibility of being upgraded to emerging market, and strong capital inflow.
Additionally, expectation from initial public offerings (IPOs) from major corporations such as Vinhomes, VPBank, Techcombank, HDBank, PV Oil, PV Power, among others, as well as Vietnam's ongoing divestment process in state-owned enterprises have attracted investors.
In the second quarter, the VN-Index's price/earnings ratio (P/E) increased to over 20, which was quite high compared to other stock markets in the region, leading to investors from local and abroad to sell for profit.
However, external factors such as the escalation of the trade war between the world's two largest economies, and volatility of the exchange rate, caused the stock market to enter the correction phase.
In late September FTSE Russell - a leading global provider of financial services, has added Vietnam, which is currently classified as a frontier market, to the watch list for possible reclassification as secondary emerging, indicating a healthy development of Vietnam's market.
Source: Indexq.
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The impressive growth rate of Vietnam's stock market is thanks to strong growth recorded in the fourth quarter of 2017 and first quarter of 2018. During these period, Vn-Index had soared from 820 points to its record high of 1,200 points, coming on the back of positive macro-economic factors, possibility of being upgraded to emerging market, and strong capital inflow.
Additionally, expectation from initial public offerings (IPOs) from major corporations such as Vinhomes, VPBank, Techcombank, HDBank, PV Oil, PV Power, among others, as well as Vietnam's ongoing divestment process in state-owned enterprises have attracted investors.
In the second quarter, the VN-Index's price/earnings ratio (P/E) increased to over 20, which was quite high compared to other stock markets in the region, leading to investors from local and abroad to sell for profit.
However, external factors such as the escalation of the trade war between the world's two largest economies, and volatility of the exchange rate, caused the stock market to enter the correction phase.
In late September FTSE Russell - a leading global provider of financial services, has added Vietnam, which is currently classified as a frontier market, to the watch list for possible reclassification as secondary emerging, indicating a healthy development of Vietnam's market.
