How much should you pay attention to the Vietnam Blue Chip Index VN-30? An in-depth analysis from an investment perspective

Over the past decade, Vietnam’s stock market has attracted the attention of investors worldwide. On this vibrant Southeast Asian land, the VN-30 Index, as Vietnam’s most important blue-chip stock index, represents the country’s economic pulse and financial market vitality. Compared to other regional markets, VN-30, with its unique market position, has become a key asset in many investors’ portfolios. So, what exactly are the forces behind this index, and what is its investment value?

What is the VN-30 Index

Among hundreds of companies listed on the Ho Chi Minh Stock Exchange (HOSE), only the top 30 giants with the strongest fundamentals are included in the VN-30 Index. This index tracks the performance of the 30 largest market capitalization and most liquid listed companies, which together account for approximately 70%-80% of the total market capitalization of the Ho Chi Minh Stock Exchange.

The index is calculated using a market cap-weighted method and adjusted based on free float, ensuring that stocks with genuine active trading are assigned appropriate weights. In terms of influence, the leading technology company FPT, steel giant HPG, and banking stock ACB dominate the VN-30’s price movements.

By industry classification, the financial sector accounts for the largest share at 45%, reflecting the core role of banks and financial institutions in Vietnam’s economy; real estate ranks second with 20%, highlighting the importance of the property industry; consumer goods and building materials contribute 11% and 8.5%, respectively. This diversified composition allows VN-30 to represent the full picture of Vietnam’s economy.

What criteria must companies meet to enter VN-30

Not all Vietnamese listed companies qualify for this elite club. To be included in VN-30, companies must meet strict selection criteria:

Size and Market Cap are primary thresholds. Candidate companies must rank high in Vietnam’s stock market by market capitalization, ensuring that index constituents are truly large enterprises.

Trading Liquidity is equally critical. Stocks must have maintained active trading over the past 6 months, with sufficient average daily trading volume and trading days not less than 80% of the trading days during that period. This guarantees investors can buy and sell these stocks quickly and conveniently.

Free Float Ratio also has clear requirements. If a company’s free float is below 5% (meaning most shares are locked by major shareholders and not tradable), it will be excluded. This ensures genuine market participation.

Stock Type: VN-30 only includes common shares; preferred shares are not considered.

Financial Health must be robust. Companies under special regulatory supervision or with financial warnings are ineligible.

It is worth noting that the composition of VN-30 is reviewed twice a year to ensure the index always reflects the latest market landscape.

Overview of the 30 weight stocks in VN-30

These 30 companies span core industries such as finance, real estate, energy, consumer goods, and retail, driving Vietnam’s economic development from various angles.

Why VN-30 Index Still Deserves Attention

Strong Economic Growth Drivers: Vietnam has maintained one of the highest GDP growth rates in Southeast Asia for many years, providing continuous profit expansion opportunities for listed companies.

Policy Benefits: The Vietnamese government actively attracts foreign investment and has introduced a series of measures to encourage investment, creating a favorable policy environment for capital markets.

Industry Diversification: VN-30 covers multiple promising sectors, allowing investors to achieve risk diversification through a single index.

Corporate Growth Potential: Many constituent stocks are still in rapid expansion phases, with significant future profit growth potential. This means VN-30 not only reflects the current market but also carries future growth expectations.

Core Differences Between VN-30 and the Overall Market Index

Vietnam’s stock market has two main indices; understanding their differences is crucial for investment decisions:

VN Index (VN Index) covers all listed companies on Ho Chi Minh Stock Exchange, providing a comprehensive market picture but with higher volatility due to numerous constituents, often influenced by small and medium-sized enterprises.

VN-30 Index focuses on the 30 most competitive leading companies, with relatively milder fluctuations, stronger liquidity, and better representation of Vietnam’s core economic forces.

From an investment perspective, VN-30’s constituents have excellent liquidity, making it easier to build and unwind positions; meanwhile, the VN Index offers a broader view for investors seeking comprehensive exposure to the Vietnamese market.

Which stocks are most worth watching

Vinhomes (VHN) - Real Estate Leader

• Current Price: 41,750 VND, P/E ratio 7.86, P/B ratio 0.97
• Investment Logic: Vietnam’s largest property developer, with large-scale projects nationwide, including smart cities and residential communities, benefiting from urbanization
• Development Trends: Continually expanding projects in major cities, infrastructure improving, supporting long-term growth

Vietcombank (VCB) - Financial Leader

• Current Price: 93,000 VND, P/E ratio 16.21, P/B ratio 2.77
• Investment Logic: Vietnam’s largest commercial bank, with nationwide branch coverage, high international recognition, and direct benefits from economic growth in its lending business
• Development Trends: As the economy expands, demand for financial services rises, with strong growth in deposit and loan activities

Hoa Phat Group (HPG) - Steel Giant

• Current Price: 24,850 VND, P/E ratio 14.74, P/B ratio 1.47
• Investment Logic: Vietnam’s largest steel producer, with ongoing demand from large infrastructure projects and construction activities, ensuring stable revenue growth
• Development Trends: Increased infrastructure investment and construction activities directly boost steel demand, with considerable profit margins

Vinamilk (VNM) - Consumer Goods Titan

• Current Price: 71,900 VND, P/E ratio 17.41, P/B ratio 4.44
• Investment Logic: Vietnam’s largest dairy company, with strong positions domestically and internationally, driven by continuous consumption upgrades
• Development Trends: Rising demand for healthy foods, especially nutritional dairy products, with huge growth potential

Core Factors Influencing VN-30 Trends

Domestic Factors: Government fiscal and monetary policy adjustments, corporate earnings, inflation levels, and exchange rate fluctuations directly impact the index.

International Factors: Global economic cycles, Federal Reserve policies, trade tensions, and commodity prices exert ongoing pressure on this open economy stock market. Notably, the US rate hike cycle often draws funds away from emerging markets.

Final Recommendations

The VN-30 Index represents the most dynamic part of Vietnam’s economy. If you are optimistic about Vietnam’s long-term economic prospects and can tolerate short-term volatility, VN-30 could be a valuable addition to your investment portfolio. However, always clarify your goals, time horizon, and risk tolerance before investing, and make rational decisions.