VIỆT NAM’S FINANCIAL FIRMS HEAT UP WITH NEW WAVE OF M&A ACTIVITY
A new wave of mergers and acquisitions (M&A) is unfolding in Việt Nam’s financial sector, as commercial banks and securities firms accelerate their push into investment banking and asset management. The movement has intensified during the 2025 annual general meeting season. Among the most high-profile developments is Sacombank’s move to invest up to VNĐ1.5 trillion (US$57.8 million) in acquiring a controlling stake of over 50 per cent in a securities company.
OPEN-END FUNDS KEEP ATTRACTING CAPITAL INFLOWS
Though capital flows into open-end funds have shown signs of weakening, amid investors' caution over the US tariff change, such fund is the only group that has continuously maintained net inflows since the fourth quarter of 2023. According to Đỗ Hồng Vân, Head of the financial data provider FiinGroup’s Data Analysis Division, equity funds suffered the strongest capital withdrawal pressure.
GOVERNMENT PROPOSES 2% VAT REDUCTION ON SELECT GOODS AND SERVICES UNTIL 2026
The Government has proposed a 2 per cent reduction in the value-added tax (VAT) for goods and services currently taxed at 10 per cent, lowering the rate to 8 per cent. The proposal, which recommends maintaining this VAT reduction until December 31, 2026, was presented by Minister of Finance Nguyễn Văn Thắng during the ongoing National Assembly (NA) session.
VN-INDEX BREAKS THROUGH 1,300 POINTS
Vietnam’s benchmark VN-Index rose for a third straight session on May 14, closing above the 1,300-point mark for the first time in a month, led by strong gains in banking and brokerage shares. The index ended up 1.16%, or 16.3 points, to 1,309.73 points, with 189 stocks advancing and 122 others declining. Trading volume and value improved 12.6% and 14.4% over the previous session, respectively, with 1.07 billion shares worth VND27.3 trillion changing hands.
STOCK MARKET STARTS OFF MAY ON A POSITIVE NOTE AS KEY STOCKS GAIN POST-HOLIDAY
Việt Nam’s stock market opened May on a positive footing, with the VN-Index reclaiming the 1,240-point threshold despite low liquidity and cautious sentiment. The recovery was driven largely by gains in key large-cap stocks, particularly those under the Vingroup ecosystem. The session on May 5 also marked the first trading day operating under the new KRX system, aimed at modernising Việt Nam’s market infrastructure.
CORPORATE PROFITS SOAR IN Q1 2025, LED BY BANKING SECTOR
As of April 28, a total of 685 listed companies, representing 40 per cent of market capitalisation across Việt Nam’s three stock exchanges, had released their first-quarter financial results, revealing a broad-based surge in profits. According to statistics from Yuanta, market-wide revenue and post-tax profit rose by approximately 20.1 per cent and 50.8 per cent year-on-year, respectively, buoyed by the low comparative base of 2024.
MARKET EXTENDS RECOVERY AS FOREIGN INVESTORS RETURN TO BOTTOM-FISHING
Việt Nam’s stock market continued its upward trend on Thursday, largely supported by strong performances from Vingroup stocks, helping the VN-Index break through the 1,220-point mark. Market liquidity dipped slightly, while foreign investors showed signs of bottom-fishing across key blue-chip counters. The morning’s sluggish and range-bound trading persisted briefly into the early afternoon session, before giving way to a strong rally.
VIETNAM POISED FOR MARKET UPGRADE, PROMISING CAPITAL GROWTH
Vietnam’s stock market is expected to reach a major milestone in 2025 with a likely upgrade to emerging market status, opening the door to global capital and boosting sustainable economic growth. Upgrading the stock market from frontier to emerging status has been a strategic priority for the Vietnamese government for years. If achieved, the upgrade would make Vietnam a key destination for major global investment funds.
