Is the VN30 Index worth paying attention to? An in-depth analysis of Vietnam's blue-chip stock market

The past decade has seen Vietnam’s stock market become a focal point for global investors. Compared to the mediocre performance of the Thai stock market during the same period, Vietnam’s economy has been driven by rapid growth and investor-friendly policies. Its blue-chip index, VN30 Index, accurately reflecting mainstream market trends, has attracted increasing international capital.

So, is VN30 really worth investing in? This article will answer that question from the perspectives of index composition, stock selection logic, and company analysis.

What is VN30 Index? Core Feature Analysis

VN30 Index is the most important benchmark index on the Ho Chi Minh Stock Exchange (HOSE), comprising the 30 largest and most liquid listed companies in Vietnam. These 30 companies account for 70-80% of the total market capitalization of HOSE, sufficiently representing the overall trend of the Vietnamese economy.

The index is calculated using a Free-Float Adjusted Market Cap-Weighted method, ensuring a more scientific allocation of weights. The three main drivers influencing index fluctuations are:

• Technology: FPT Corporation (FPT)
• Manufacturing: Hoa Phat Group (HPG, mainly steel)
• Financial: Asia Commercial Bank (ACB)

From industry distribution, VN30’s composition shows a clear financial-driven characteristic—financial sector accounts for as much as 45%, followed by real estate (20%), consumer staples (11%), and building materials (8.5%). This high concentration structure amplifies the performance of leading companies but also means investors need to pay attention to policy environments in the financial sector.

Strict Criteria for Inclusion in VN30

Not all Vietnamese listed companies can enter this elite club. The stock selection standards for VN30 are quite strict:

1. Market Cap Threshold
Must rank among the top Vietnamese listed companies by market cap, contributing over 80% of HOSE’s total market cap. This guarantees the index’s representativeness.

2. Liquidity Requirements
Companies must meet high liquidity standards—average daily trading volume over the past 6 months must remain high, and trading days must account for at least 80% of market trading days. Companies lacking sufficient liquidity, even if excellent, are unlikely to be included.

3. Free-Float Threshold
Only shares freely tradable in the market are counted; shares held long-term by major shareholders are excluded. Any company with a Free-Float ratio below 5% will be directly excluded.

4. Stock Type Restrictions
VN30 only includes common shares; preferred shares and special classes are not considered.

5. Financial Health Review
Companies must maintain good financial health, with no warnings, suspensions, or special monitoring by the exchange.

It is worth noting that the composition of VN30 is reviewed twice a year (semi-annual review), ensuring the index remains dynamically representative and providing opportunities for high-performing companies to enter.

The 30 Core Members of VN30

This list includes leading enterprises across major Vietnamese industries, from banking, real estate, food & beverage to energy, covering a broad spectrum.

VN30 vs VN Index: Key Differences Investors Need to Know

Vietnam’s stock market has two main benchmark indices, which, although both reflect market trends, have significant differences:

VN Index (All Market Index)

• Covers all listed companies on HOSE
• Due to numerous components with varying quality, volatility is relatively high
• Reflects the overall Vietnamese economy but includes some less-liquid small and medium-sized stocks

VN30 Index (Blue-Chip Index)

• Selects 30 large, highly liquid companies
• Volatility is relatively moderate, with stronger representativeness
• Easier for institutional investors to track, with sufficient liquidity

From an investment perspective, VN30 attracts more institutional and overseas investors due to its higher transparency, trading convenience, and relatively controlled risk.

Key Factors Driving VN30 Fluctuations

The volatility of VN30 is influenced by multiple factors, including Vietnam’s domestic economic policies and the global macro environment.

Domestic Factors

• Adjustments in monetary and fiscal policies directly impact market liquidity and corporate profit expectations
• Quarterly performance of VN30 constituent companies acts as a direct catalyst for index fluctuations
• Rising inflation can suppress consumer demand, dragging down the index
• Exchange rate fluctuations of the Vietnamese dong against major currencies affect export-oriented companies’ revenues
• Domestic political and environmental conditions influence investor risk appetite

Overseas Factors

• Federal Reserve rate hikes can lead to capital outflows from emerging markets
• Global recession expectations can depress risk assets in emerging markets
• Geopolitical risks and trade frictions directly impact Vietnam’s orders as a global manufacturing hub
• Fluctuations in commodity prices (especially oil) affect energy companies’ performance

Four Stocks in VN30 Worth Watching

1. Vinhomes (VHM) | Real Estate Leader

• Current Price: 41,750 VND
• Valuation Metrics: P/E 7.86x, P/B 0.97x
• Why Invest: Vietnam’s largest property developer with stable progress across nationwide projects. P/B below 1 indicates the stock price has fallen below book value, offering potential recovery. Real estate is a key growth engine for Vietnam’s economy with strong long-term demand.
• Trend Outlook: Projects in major cities are in delivery phases, generating continuous cash flow contributions.

2. Vietcombank (VCB) | Financial Heavyweight

• Current Price: 93,000 VND
• Valuation Metrics: P/E 16.21x, P/B 2.77x
• Why Invest: Vietnam’s largest commercial bank with extensive network coverage and high international recognition. Financial sector accounts for 45% of VN30 weight; VCB benefits directly from economic growth-driven credit expansion.
• Trend Outlook: Economic growth supports credit growth; improved net interest margin environment favors bank profitability.

3. Hoa Phat Group (HPG) | Steel Industry Chain

• Current Price: 24,850 VND
• Valuation Metrics: P/E 14.74x, P/B 1.47x
• Why Invest: Vietnam’s largest steel producer, benefiting from infrastructure and real estate investment growth. As an industrial raw material supplier, HPG’s growth is highly correlated with overall economic trends.
• Trend Outlook: Continued government investment in infrastructure sustains high demand for steel.

4. Vinamilk (VNM) | Consumer Food

• Current Price: 71,900 VND
• Valuation Metrics: P/E 17.41x, P/B 4.44x
• Why Invest: Vietnam’s largest dairy company with brand influence across Southeast Asia. Consumer companies tend to have strong resilience and stable cash flows.
• Trend Outlook: Growing middle class and health-conscious consumption trends offer long-term growth potential.

Is VN30 Truly Worth Investing?

VN30 Index is indeed worth paying close attention to, for the following reasons:

Sustained Growth Drivers: Vietnam has maintained a GDP growth rate of 5-7% for several years, ranking among the top emerging markets globally, far surpassing many developed markets. Although growth has slowed compared to previous years, it still exceeds the global average.

Favorable Policy Environment: The Vietnamese government actively implements measures to attract foreign investment, through trade agreements and industrial upgrading policies. The US-China trade conflict has further shifted some manufacturing to Vietnam, benefiting long-term.

Diversified Investment Opportunities: VN30 covers core industries such as finance, real estate, consumer, and energy, providing profit points across different economic cycles.

Risk Warning: Although VN30 is representative of blue-chip stocks, as an emerging market index, it still faces exchange rate risks, liquidity risks (sudden withdrawal of international capital), and valuation volatility risks. Investors should assess their risk tolerance and investment horizon before investing.

Final Words

VN30 Index represents high-quality assets of the Vietnamese economy and is particularly attractive to investors optimistic about long-term growth in Southeast Asia. However, before making investment decisions, it is essential to evaluate based on your investment horizon, risk appetite, and capital scale. If your investment period exceeds 3 years and you can accept annual fluctuations of 15-20%, VN30 can be an important component of emerging market allocations.