In 2000, the Ho Chi Minh City Stock Exchange (HOSE) was established alongside the VN-Index, Vietnam’s first stock market index. Starting at 100 points with only two listed stocks, REE and SAM, the VN-Index has become the “compass” that measures the stock price movements of listed companies on HOSE. This index determines the growth of market capitalization at a given time compared to the base period.
The period between 2000 and 2006 witnessed the market’s first steps. The VN-Index gradually grew, reaching 751.77 points by the end of 2006. The calculation method for the VN-Index laid the foundation for the development of HOSE’s future stock indices.
VN-INDEX: LAYING THE FOUNDATION FOR A COMPREHENSIVE INDEX SYSTEM
2012 marked an important milestone with the introduction of the VN30 index, representing the 30 stocks with the largest market capitalization and highest liquidity on HOSE. Notably, the VN30 was designed with a calculation method that built upon and improved the VN-Index, marking a significant step towards standardizing indices according to international practices. While the VN-Index is based on total listed market capitalization, the VN30 employs the free-float methodology and utilizes the actual circulating volume of shares instead of listed volume.
HOSE’s 25-year journey in developing its stock index system has evolved from a single VN-Index to a comprehensive index ecosystem. These indices have become the “compass” that guides the market and provides a foundation for various financial products, contributing to the diversification of investment tools and risk management. With a strong foundation in place, HOSE’s index system will continue to evolve, embracing global financial trends and providing efficient reference tools for the investment community, thereby fostering the sustainable development of Vietnam’s stock market.
This method reflects the actual tradable market value by excluding restricted shares, such as those held by the state or strategic shareholders. As a result, the VN30 offers a more accurate picture of market fluctuations and serves as an additional reference tool for many domestic and foreign individual and institutional investors in the stock market.
Also, in 2012, HOSE established the Ho Chi Minh City Stock Exchange Index Council, comprising financial and economic experts who play a crucial advisory role in HOSE’s index and index system development strategies.
The years between 2016 and 2020 witnessed a significant breakthrough in Vietnam’s stock market. For the first time, the VN-Index surpassed its historical peak of 2007, reaching 1,200 points in early 2018. Notably, this period saw a significant expansion of HOSE’s index system with the introduction of several important indices.
EVOLVING TOWARDS A GLOBAL STANDARD INDEX SYSTEM
Firstly, capitalization-based indices were introduced, including VN100 (top 100 stocks by market capitalization), VNMidcap (mid-cap stocks), and VNSmallcap (small-cap stocks). These indices complement the VN30 and VN-Index, providing a clearer market segmentation.
Next, sector indices such as VNFIN, VNREAL, VNIND, VNCONS, and VNUTI were launched, allowing investors to track the performance of specific industries. Notably, these sector indices are constructed following the globally recognized Global Industry Classification Standard (GICS) by MSCI. This enhances comparability and international compliance while facilitating foreign investors’ access to Vietnam’s stock market.
Additionally, investment/thematic indices such as VNDIAMOND (stocks with foreign ownership limits), VNFINLEAD (leading financial stocks), VNFINSELECT (select financial stocks), and VNSI (sustainable development) were introduced to cater to different investment strategies. Notably, the VNSI is constructed following the Global Reporting Initiative (GRI) standards, providing a comprehensive assessment of environmental, social, and corporate governance factors and laying the foundation for sustainable investment products in Vietnam.
Lastly, the VNX Allshare and VNX50 indices were jointly developed by HOSE and HNX, reflecting the stock price movements of listed companies on both exchanges. These indices contribute to the unification and standardization of market indicators and serve as the basis for developing financial products such as ETFs.
This diversification offers a panoramic view of market segments’ performance, effectively supporting investment decisions and the development of new financial products. After 25 years, HOSE’s index system has evolved into a diverse and comprehensive ecosystem, including capitalization-based indices (VN30, VN100, VNMidcap, VNSmallcap), sector indices (VNFIN, VNIND, VNREAL, VNCONS, etc.), investment/thematic indices (VNDIAMOND, VNFINLEAD, VNFINSELECT, VNSI), and broad indices (VNX50, VNXAllshare).
HOSE’s new indices have significantly improved their calculation methods. In addition to using the free-float adjusted market capitalization method, these indices apply weight limits (typically 10-15%) to each constituent stock to prevent dominance by large-cap stocks. They also undergo a rigorous semi-annual review and reconstitution process.
These improvements bring HOSE’s indices closer to international standards, enhancing representation and transparency in market movement reflection. They also provide a solid foundation for developing financial derivatives such as index futures, ETF index-linked portfolios, and covered warrants.
THE RISE OF ETFs
The chart “Number of ETF codes referencing indices over the years” illustrates the robust growth of ETF products based on HOSE’s index system. From just one ETF code referencing the VN30 index during 2014-2016, there are now, as of March 2025, 17 ETF codes referencing seven different indices, with a total Assets Under Management (AUM) of over 30,000 billion VND in 2022, up from 359 billion VND in 2015, as follows:
VN30: As the pioneer index with ETF referencing since 2014, the number of ETFs referencing VN30 increased from one during 2014-2019 to three in 2020 and has stabilized at four since 2021, contributing significantly to the AUM structure over the years. AUM grew continuously from 359 billion VND in 2015 to 11,800 billion VND in 2021 and has been maintained at 8,000-9,000 billion VND since 2022, indicating the maturity and stability of the blue-chip segment.
VNX50: Started with one ETF in 2017 and increased to two ETFs from 2022 onwards.
VNFINLEAD: Maintained a stable presence of one ETF since its introduction in 2019, reflecting the investment demand for the leading financial stocks.
VNDIAMOND: Exhibited the most impressive ETF growth, rising from one code in 2019 to six codes as of March 2025. AUM surged from 5,280 billion VND in 2020 to over 18,000 billion VND in 2022 and has been sustained at 12,000-13,000 billion VND since 2023. This growth reflects investors’ keen interest in stocks with foreign ownership limits.
VN100: Maintained a stable presence of two ETFs since 2020.
VNMIDCAP and VNFINSELECT: Introduced in 2021, with each index steadily represented by one ETF code.
The significant increase in the number of ETFs and their AUM referencing different indices reflects the maturity and diversification of Vietnam’s stock market. This trend showcases investors’ growing confidence in passive investment products and underscores the effectiveness and transparency of HOSE’s index system in mirroring market movements. Notably, this statistic also indicates a shift towards more diverse investment strategies, expanding from traditional large-cap segments to specialized strategies such as foreign room limits or a focus on the financial sector.
In the next phase of development, HOSE will continue to enhance its index system with new initiatives. The focus will be on developing and diversifying indices according to specific investment strategies, such as thematic indices, high-dividend indices, and growth indices. Simultaneously, HOSE will explore ESG indices to align with global sustainable investment trends, focusing on environmental, social, and corporate governance criteria. These initiatives will provide additional reference tools for investors.
The Energy Sector’s Renaissance: Unlocking Capital Flows and Opportunities
The week of May 5th to 9th saw a return of cash flow into the market, with a particular focus on two industry groups: energy and construction.
“Capital Flows into Blue-Chip Stocks, VN30-Index Heals from Withholding Tax Wounds”
The significant de-escalation in tariff tensions between the economic superpowers has spurred a robust stock market rally at the start of the week. This development prompted a substantial influx of funds into the blue-chip stock category, with the VN30 basket’s liquidity surging to an 11-session high. Consequently, the representative index for this group has rebounded to pre-April 2nd levels, when the countervailing duty shock occurred.
Stock Market Outlook for the Week of May 12: What’s Next for Investors After KRX?
The stock market, after witnessing robust gains driven by the KRX system’s positive impact, might encounter profit-taking pressures as it ventures towards the psychological benchmark of 1,300 points.
Technical Analysis for May 12: A Tug-of-War Market
The VN-Index and HNX-Index rallied, with both MACD and Stochastic Oscillator indicators previously signaling a buy, suggesting an improved short-term outlook.
Market Pulse, May 12: US-China Tariff Cuts Spur VN-Index Rally
The market closed with positive gains; the VN-Index rose by 15.96 points (+1.26%), reaching 1,283.26, while the HNX-Index climbed 1.91 points (+0.89%) to 216.04. The market breadth favored the bulls with 502 gainers versus 260 decliners. A sea of green was seen in the VN30 basket, as 27 stocks advanced, 2 declined, and 1 remained unchanged.
