VN30 Index and the Movement Chart of the Vietnamese Stock Market

Over the past ten years, the Vietnamese stock market has become a magnet for investors worldwide. Especially when compared to neighboring countries, the VN30 Index serves as a tool that reflects market dynamics through the movement charts of 30 leading companies. Investors seeking to understand the Vietnamese market need to master reading the VN30 charts, as this index clearly tells the story of the economy and investment opportunities.

What is VN30 and Why Is It Important for Investors?

The VN30 Index is an indicator that tracks the movement of the top 30 stocks with the largest market capitalization and highest liquidity on the Ho Chi Minh Stock Exchange (HOSE). These companies account for 70-80% of the total market value, making this index a true reflection of Vietnam’s economic trends.

The calculation system for VN30 uses a Free-Float Adjusted Market Cap-Weighted method, meaning that each company’s market value (that can be traded in the market) is the main factor determining its weight in the index. The most influential stocks on the index’s movement include FPT (technology), HPG (steel), and ACB (bank).

Components of the VN30 Index and How to Read the Charts Correctly

Companies in the VN30 are from four main industries:

• Financials: about 45%, including leading banks and financial institutions
• Real Estate: about 20%, represented by Vinhomes and Novaland
• Consumer Staples: about 11%, led by Vinamilk
• Materials: about 8.5%, with Hoa Phat Group as a key player

When reading the VN30 chart, observe the decisions made when companies enter or exit the index. These reviews occur twice a year, making the chart not just a number change but a story of Vietnam’s economic ups and downs.

Criteria for Inclusion in the VN30 Index

To be included in the VN30, a company must meet strict conditions:

Market Capitalization: must be among the top 30, representing at least 80% of the total market value.

Liquidity: stocks should have high average daily trading volume and be traded continuously on at least 80% of trading days in the review period.

Free Float: at least 5% of total shares must be tradable in the market.

Stock Type: only common shares are eligible.

Financial Status: companies must not be in warning status or suspended from trading.

The 30 Stocks in the VN30 Index

The VN30 includes leading stocks such as Vietcombank (VCB), Vinamilk (VNM), Vingroup (VIC), BIDV (BID), Vinhomes (VHN), FPT Corporation (FPT), Vincom Retail (VRE), Vietjet Air (VJC), PetroVietnam Gas (GAS), Petrolimex (PLX), Bao Viet Holdings (BVH), Novaland (NVL), SSI Securities (SSI), PetroVietnam Power (POW), HDBank (HDB), Military Bank (MBB), Hoa Phat Group (HPG), Mobile World Group (MWG), Masan Group (MSN), VietinBank (CTG), Techcombank (TCB), Sacombank (STB), VPBank (VPB), Asia Commercial Bank (ACB), TPBank (TPB), Khang Dien House (KDH), Phu Nhuan Jewelry (PNJ), and Becamex IDC (BCX).

Difference Between VN Index and VN30 Index

Although both indices measure Vietnam’s stock market movements, their purposes and scopes differ:

VN Index: covers all stocks listed on the Vietnamese stock exchange, resulting in higher volatility but a more comprehensive market overview.

VN30 Index: focuses only on large-cap, highly liquid stocks, making it more stable and a good representative of blue-chip stocks.

Generally, the VN30 chart tends to show a smoother trend compared to the VN Index because it comprises stable, large companies.

Factors Driving Changes in the VN30 Index

The VN30 is influenced by internal and external factors:

Domestic Factors:

• Vietnam’s monetary and fiscal policies, especially interest rate adjustments and infrastructure investments
• Earnings reports of listed companies, directly affecting stock prices and the index
• Inflation rates and exchange rates
• Political stability

External Factors:

• Global economic conditions, trade wars, and other geopolitical events
• U.S. interest rate policies, which may cause capital outflows from emerging markets
• Global commodity prices, especially since Vietnam exports agricultural and industrial products

Investment Strategies for the VN30 Index

Before investing, investors should consider multiple factors:

Trend Chart Analysis: observe VN30 movements over different periods—daily, weekly, or monthly—to identify main trends.

Industry Analysis: select companies within growing sectors like technology or renewable energy.

Valuation Assessment: check P/E and P/B ratios to determine if stocks are undervalued or overvalued relative to growth potential.

Portfolio Diversification: reduce risk by investing in multiple companies instead of a single stock or consider funds tracking the VN30.

Is VN30 Still Attractive Today?

The VN30 remains a convenient investment option for several reasons:

• Vietnam’s economy continues to grow strongly, outpacing many emerging markets, leading to a long-term upward trend in the VN30 chart.
• The Vietnamese government emphasizes attracting foreign investors, supporting market growth.
• Many companies in the VN30 are in early growth stages with significant potential.
• The index includes companies from diverse industries, helping investors diversify risk.

Summary

The VN30 Index is a powerful investment tool but requires a deep understanding of chart reading and influencing factors. It offers attractive opportunities for those ready to invest in a steadily growing market. If you are interested in the Vietnamese stock market and want to study the VN30 charts more deeply, this index could be a good starting point for building an international investment portfolio.