Stock market experiences a downturn as Vietnam's VN-Index drops below the 1,500 mark.
On Tuesday, July 29, 2025, the Vietnamese stock market experienced a significant downturn, with the VN-Index plunging 64.01 points or 4.11%, closing at 1,493.41[1][3][4]. This marked one of the largest single-day drops in recent history.
In the securities sector, major firms like Saigon Securities (SSI) and brokers such as VNDirect and Vietcap saw their stocks fall sharply, with some hitting their floor prices, indicating heavy selling pressure in the sector[1][2][3].
The real estate sector also felt the brunt of the sell-off, with prominent companies like Dat Xanh and Novaland dropping significantly, closing at floor prices on high liquidity, contributing to the market decline[2]. Notable exceptions were Sai Gon Thuong Tin Real Estate JSC (SCR), which nearly hit its ceiling price and became the strongest performer in the sector.
The banking sector was not immune to the sell-off, with stocks of lenders such as SHB, MBBank, TPBank, and HDBank falling by over 6.5%. TPBank and HDBank were among the VN30 stocks that hit near-floor prices, reflecting widespread negative sentiment towards banking stocks[1][2][3].
The correction was amplified by the market having recently hit a record high (1,557 points) just a day before, which likely caused investors to take profits and reassess valuations. The VN-Index’s price-to-earnings ratio had reached its 10-year average of 15, prompting caution among investors in light of actual second-quarter earnings reports[2]. The surge in liquidity to a historic peak of about 72-76 trillion VND during the sell-off underscores the intensity and breadth of the sell pressure across all sectors[1][4].
Experts indicated the correction was expected after a rapid rise of 181 points in less than a month, but the magnitude of the fall exceeded expectations, fueled by increased selling momentum particularly in the afternoon trading session[4]. In summary, the downturn reflected a mix of profit-taking after record gains, valuation concerns, and broad-based selling pressure hitting securities, real estate, and banking sectors hardest.
It is worth noting that the stock market in Ha Noi also dipped on Tuesday, and liquidity within the banking sector surged, surpassing the average of the past 20 sessions, indicating intense competition between buying and selling at new price levels.
Foreign investors net sold nearly VND882.4 billion on the HoSE, contributing to market pressure[3]. The market's breadth was negative, with more ticker symbols declining than increasing[1][2][3].
[1] Viet Nam News. (2025, July 30). VN-Index falls 64 points, or 4.11%. Retrieved from https://vietnamnews.vn/economy/948267/vn-index-falls-64-points-or-4-11.html
[2] Reuters. (2025, July 30). Vietnam shares drop 4.11%, hit by profit-taking, valuation concerns. Retrieved from https://www.reuters.com/markets/asia/vietnam-shares-drop-4-11-hit-by-profit-taking-valuation-concerns-2025-07-30/
[3] Bloomberg. (2025, July 30). Vietnam Stocks Drop Most Since 2018 as Foreigners Sell. Retrieved from https://www.bloomberg.com/news/articles/2025-07-30/vietnam-stocks-drop-most-since-2018-as-foreigners-sell
[4] Finance Asia. (2025, July 30). Vietnam's stock market plunges as foreign investors sell. Retrieved from https://www.financeasia.com/news/latest-news/vietnam-s-stock-market-plunges-foreign-investors-sell
- The artifical intelligence (AI) systems in the finance industry, employed by some investors, might have contributed to the selling pressure experienced by stocks in the securities, real estate, and banking sectors during the downturn in the Vietnamese stock market on July 29, 2025.
- As the economy is interconnected, the significant drop in the stock market, affecting numerous businesses as a result, could have far-reaching implications for the broader Vietnamese economy, including impacting the flow of investments within these industries.
- As AI continues to advance and play an increasingly important role in the market, understanding its impact on stock markets, such as that observed on July 29, 2025, could lead to new investment strategies and risk management tools for businesses within the finance industry, benefiting the overall economy.
