As third-quarter earnings reports emerge, covering firms that represent over 30% of total market capitalization, five key factors are likely to shape Vietnam’s stock market through year-end: sector performance, valuations, macroeconomic growth, monetary policy, and new regulations.
Corporate profits grew sharply in the third quarter, though results diverged widely across industries. Consumer discretionary and technology companies posted strong gains, while insurance and mid-sized real estate firms lagged. Analysts expect overall earnings to rise 18.3% in 2024 and 23% in 2025.
Vietnam’s market remains attractively valued, with a forward price-to-earnings ratio of 11.8, below most regional peers. Forecast GDP growth of 6.5% to 7% in 2024, stable interest rates, and upcoming reforms—such as the removal of pre-trade margin requirements for foreign investors—could further support sentiment.
This article is a condensed and translated summary (original in Vietnamese, VN) of a feature published in the November 2024 issue of Bloomberg Businessweek Vietnam.
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