Vietnam's stock market delivers impressive performance in May

Vietnam’s stock market delivered an impressive performance in May, reaching a new 3-year high, according to the latest Monthly Market Review and Outlook released by the SSI Securities Corporations.

The report stresses that Vietnam's macroeconomic data in May continued to show strong growth momentum, with a clear recovery in traditional growth drivers. The GDP of the second quarter is believed to be on track for a 7.5% year-on-year growth. 

The VNIndex stood at 1,332.6 points, up 106 points (+8.67%) from the previous month, marking the strongest monthly gain since July 2023. The rally was led by sectors such as Real Estate, Tourism & Entertainment, and Chemicals. Market liquidity remained robust, easing only 7% from the unusually high level in April. This helped mid-cap stocks outperform blue-chips.

Looking ahead to June, the SSI anticipates that selling pressure may intensify following the market’s approximately 22% rebound from the early-April low—particularly among stocks that have significantly outperformed. Market divergence is expected to persist, with capital flows likely rotating toward three key themes: (1) defensive stocks, (2) companies with strong Q2 earnings momentum, and (3) names less vulnerable to tariff-related risks.

Regarding long-term outlook, the stock market continues to benefit from flexible monetary and fiscal policies. Going forward, public investment and real estate recovery are expected to serve as key growth drivers for cyclical sectors.