Vietnam’s stock market fell sharply for the second session in a row, with the VN-Index retreating toward 1,600 points under heavy profit-taking pressure. Yet, billions of US dollars continued pouring into equities, signaling investor confidence and positive forecasts.

At the opening of August 25, profit-taking dragged most blue-chip stocks down, sending the VN-Index tumbling more than 10 points. Losses deepened in the afternoon, with the index at one point shedding 35 points. By the close, the VN-Index had dropped 31.44 points (-1.91%) to 1,614.03.

This followed a nearly 43-point decline (-2.5%) on August 22. Combined, the two sessions erased more than 74 points (around 4.4%), even after a remarkable 50% surge of roughly 550 points since April, when the VN-Index climbed from 1,100 to above 1,650.

Market experts caution that the recent pullback looks more like a correction than the start of a downtrend. After such a strong rally, a 10-15% adjustment is seen as normal.

Bank stocks under pressure, Vingroup shines

Banking shares led the losses on August 25, with several hitting the floor, including VPBank (VPB), TPBank (TPB), VIB, ACB, and Sacombank (STB). By the session’s end, only VPB, TPB, and VIB remained at the floor, with TPBank still posting over 12.7 million shares on the sell side.

Despite the selloff, bottom-fishing demand helped many bank stocks recover to more moderate declines.

Meanwhile, Vingroup (VIC) stood out, climbing to a record 131,000 VND/share, pushing its market cap past 500 trillion VND (about USD 20 billion) for the first time. It now trails only Vietcombank (540 trillion VND). Vingroup’s market value has more than tripled since the start of 2025, driven by major real estate projects and new strategies in infrastructure and energy alongside its established pillars of industry, technology, and services.

Billions still flowing into equities

Despite the back-to-back declines, capital inflows remain strong. On August 25, trading value hit 46 trillion VND (about USD 1.8 billion) across three exchanges. The prior session saw nearly 67 trillion VND (USD 2.6 billion) changing hands.

Analysts expect liquidity to stay high, supported by low interest rates, the State Bank of Vietnam’s monetary easing moves, strong profit growth in listed firms, and the potential upgrade of Vietnam’s stock market status.

Many banks have resumed paying cash dividends after years of withholding them, and listed companies are also rewarding shareholders generously, with some offering payouts as high as 45% in late August.

Looking ahead, investors are watching for a potential US Federal Reserve rate cut on September 17, a more stable USD/VND exchange rate, and Q3 earnings results from listed companies - all of which could bolster market sentiment.

Manh Ha