The Vietnamese stock market has witnessed an impressive trading session, just some days before the National Day holiday. The high of VND1,200 points has been successfully reached with the majority of shares increasing in pricesp and the cash flowing to all business fields.

Closing the August 28 session, the VN Index rose by 18.35 points, or 1.55 percent, to 1,201.72 points. Nearly all key stocks gained at the session, especially bank and real estate ones. The liquidity was VND22 trillion in total on three bourses, a relatively high level just days before the long holiday. 

The selling pressure was not strong, while demand was high. Analysts estimate that a big amount of capital, up to VND61 trillion, is in accounts, waiting to be disbursed at any time.

On August 28, 28 out of 30 key shares in VN30 group increased in price, while the remaining two stood at the reference levels.

A high number of shares saw sharp price increases and caught foreign investors’ attention, such as Vingroup (VIC) and Vinamilk (VNM). The former increased by VND1,200 per share in price to VND64,700, while the latter by VND3,000 to VND77,900. 

Investors hope that VinFast can maintain its high capitalization value of hundreds of billions of dollars on Nasdaq and become a new legend in the electric automobile manufacturing sector.

The prices of Vinhomes (VHM) and Vincom Retail (VRE) also increased significantly by VND600 and VND1,050 to VND54,700 and VND29,750 per share, respectively.

FPT share prices increased sharply by VND3,400 per share, creating a new historic peak at VND94,000 per share, which means that the largest Vietnamese IT corporation has a capitalization value of VND119.4 trillion, or $4.9 billion. This is a rare technology share that can conquer a new peak.

As such, FPT share prices have increased by 13 times compared with 10 years ago. The tech firm benefits from the global digital transformation trend, despite the world’s weak economy.

In the oil and gas sector, PV GAS (GAS) and Petrolimex (PLX) prices have also increased sharply. Hoa Phat Group (HPG), a steel manufacturer, has seen prices rise by VND900 to VND26,850 per share. Bank shares all have increased slightly.

The decision to postpone the enforcement of some articles in the State Bank of Vietnam’s (SBV) Circular 06 on controlling credit quality is expected to have positive influences on the stock market.

Retail shares are also experiencing good days. The Gioi Di Dong (MWG) share prices increased by 1,200 to VND51,700 per share, and Masan by VND1,000 to VND80,700.

The consumer demand in Vietnam tens to increase again. MWG has reported a 5 percent increase in July’s revenue to VND9.9 trillion. Central Retail, the Thai retailer which is running a series of retail chains including GO!, Nguyen Kim, Tops Market and Lanchi Mart, earned VND17 trillion in Vietnam in the first half of 2023.

Multi-billion dollars to flow to stock market

According to VNDirect Securities, the 30 top securities companies had roughly VND61 trillion worth of capital by the end of the second quarter, ready to be disbursed to collect shares. 

Analysts said the figure may increase in the time to come as bank deposits are on the decrease and the credit grows slowly.

The cash keeps flowing into the stock market as the bank deposit interest rates have been decreasing and become less attractive. The interest rates have been lowered to 4 percent for deposits under 6 months. Other investment channels are also less attractive: the real estate market is lackluster, while gold prices have not fluctuated heavily.

Michael Kokalari from VinaCapital commented that the stock market is supported by good news, including the recovery of exports, which will help listed companies’ profit increase.

VNDirect also said the cash flow has been moving from bank deposits to other asset channels, including the stock market.

Analysts believe that now is the time to hoard shares in anticipation of the boom, expected to come in late 2023. Money will flow to Vietnam if the dong/dollar exchange rate is stable.

Manh Ha