In the first week of August 2026 (August 3–7), Vietnam's stock market continued its strong July performance, with all three major indices closing higher. The Ho Chi Minh Stock Exchange's VN-Index rose 2.3% for the week to close at 1,297.8 points, just a step away from the 1,300-point threshold; the Hanoi Stock Exchange's HNX-Index gained 1.8%, and the UPCOM Index rose 1.2%. Trading was active, with average daily turnover exceeding VND 25 trillion (approx. USD 1 billion), a 15% increase from the July average. More notably, foreign net buying for the week reached VND 4.2 trillion (approx. USD 170 million), a new weekly high for 2026, signaling growing international confidence in the Vietnamese market.
Market Review: Building Momentum Amid Fluctuations
This week, Vietnam's stock market exhibited a typical 'rising amid fluctuations' pattern. On Monday (August 3), buoyed by global market optimism from the previous weekend, the VN-Index opened higher and continued to rise, closing up 1.1% and breaking through the 1,280-point resistance level. From Tuesday to Wednesday, the market entered a technical correction, with the index fluctuating narrowly between 1,270 and 1,285 points on slightly reduced volume, but without panic selling. On Thursday, driven by a joint rally in the financial and real estate sectors, the index broke through 1,290 points, reaching a new high since April 2026. On Friday, despite intraday profit-taking pressure, the market turned positive in late trading led by blue-chips, ultimately closing at 1,297.8 points. On a weekly chart, the VN-Index has risen for four consecutive weeks, accumulating a gain of 6.8%, demonstrating a strong upward trend.
Foreign Capital Flows: Net Buying Hits Yearly High, Focused on Finance and Consumer
Foreign capital flows were the week's biggest highlight. According to data from the Vietnam Securities Depository (VSD), foreign net buying in the first week of August reached VND 4.2 trillion, with Thursday's single-day net buying alone reaching VND 1.8 trillion, the highest single-day figure for 2026. By sector, foreign capital mainly flowed into finance (banking, securities), consumer (food & beverage, retail), and information technology. In terms of specific stocks, the top five for foreign net buying were Vietcombank (VCB), Vinhomes (VHM), Masan Group (MSN), FPT Corporation (FPT), and Techcombank (TCB). Analysts noted that the accelerated foreign inflows are closely linked to Vietnam's improving macroeconomic fundamentals, better corporate earnings, and the government's ongoing capital market reforms.
Sector Rotation: Finance and Real Estate Drive, Tech Stocks Surge
Sector rotation was a prominent feature this week. The financial sector continued its July strength, with bank stocks generally rising 2-4%: Vietcombank (VCB) up 3.5%, BIDV (BID) up 2.8%, and Techcombank (TCB) up 4.2%. Securities stocks were also active, with SSI Securities up 5.1% and HCM Securities up 4.6%. The real estate sector strengthened again on expectations of favorable policies, with Vinhomes (VHM) up 3.9%, Novaland (NVL) up 5.3%, and Phat Dat Real Estate (PDR) up 6.1%. Notably, the technology sector surged this week, with FPT Corporation (FPT) soaring 7.2% to a record high, driving the information technology index to a weekly gain of 5.8%. Market analysis suggests that expectations for accelerating digital transformation in Vietnam and the shift of semiconductor supply chains provide long-term growth momentum for tech stocks.
Macro Environment: Improving Economic Data, Policy Dividends Released
Behind the rise of Vietnam's stock market is the continuous improvement of macroeconomic data. On August 4, the Ministry of Planning and Investment released data showing that actual disbursed foreign direct investment (FDI) in Vietnam reached USD 12.5 billion in the first seven months of 2026, up 12.5% year-on-year and a record high for the period. Additionally, the July Manufacturing Purchasing Managers' Index (PMI) registered 52.8, marking the eighth consecutive month in expansion territory, indicating sustained recovery in manufacturing sentiment. On the policy front, the Vietnamese government recently introduced a series of capital market reform measures, including simplifying listed company disclosure procedures, expanding foreign ownership limits, and promoting the development of the derivatives market. State Securities Commission (SSC) Chairman Tran Van Dung stated at a press conference on August 5 that the government aims to include the VN-Index in the MSCI Emerging Markets Index watchlist by the end of 2026, which would further attract international passive capital inflows.
Investment Strategy: Focus on Earnings Certainty and Valuation Repair Opportunities
Looking ahead, multiple securities firms believe Vietnam's stock market still has upside potential supported by fundamentals, but caution is needed in the short term regarding technical resistance at the 1,300-point mark. Nguyen Minh Duc, Head of Research at Rong Viet Securities, stated: 'The current VN-Index P/E ratio is around 14x, below the average for major Southeast Asian markets, leaving room for valuation repair. We recommend investors focus on stocks with Q2 earnings surprises, especially leading companies in the financial, consumer, and technology sectors.' Vietnam Investment Securities (IVS) pointed out that August is the period when Vietnamese listed companies concentrate on releasing semi-annual reports, making earnings-driven performance the main market theme. The firm advises investors to focus on blue-chip stocks with abundant cash flow and high dividend yields, while also watching for trading opportunities from policy catalysts in the real estate sector. Additionally, with sustained foreign inflows, highly liquid heavyweight stocks like VCB and VHM are also worth allocating.
Risk Warning: Global Uncertainty Remains a Concern
Despite the optimistic short-term outlook for Vietnam's stock market, investors should remain vigilant about potential risks. First, global inflationary pressures and the monetary policy direction of major central banks remain uncertain; if expectations for a Fed rate hike in September intensify, it could trigger capital outflows from emerging markets. Second, domestic inflation in Vietnam has picked up, with the July CPI rising 3.8% year-on-year, approaching the government's 4% target. If prices continue to rise, it may force the State Bank of Vietnam to tighten monetary policy. Additionally, geopolitical risks (such as the South China Sea situation) could also disturb market sentiment. Overall, Vietnam's stock market is in a phase of resonance driven by 'improving economic fundamentals + policy dividends + foreign capital inflows,' with a positive medium-term trend. However, investors need to remain rational, manage positions prudently, and monitor the transmission effects of global macro environment changes on the market.
As of press time, the first week of August trading in Vietnam's stock market has concluded successfully. As the Q2 earnings season enters its peak and the policy dividends from the government's push for capital market opening gradually materialize, Vietnam's stock market is expected to continue challenging the 1,300-point level and beyond in the remaining weeks of August. For investors, seizing structural opportunities and selecting stocks with high earnings certainty will be key to navigating market volatility.
