After falling to 1,651 points, the VN-Index rebounded to 1,776 points in just six trading sessions. Liquidity also improved significantly, with matching value on the Ho Chi Minh Stock Exchange (HoSE) returning to around VND19-20 trillion ($761.88 million) per session.

Notably, foreign investors returned as net buyers on HoSE for three consecutive sessions, with total net purchases reaching VND2,446 billion ($93.18 million), focusing on stocks such as FPT, VHM, VIC, MBB, HPG and PNJ.

The move was seen as a positive signal after the market experienced a sharp correction in July.

According to MB Securities (MBS), seasonal factors are supporting the market. Statistics show that the probability of the VN-Index gaining in August is around 80%. Over the past six years, the market has risen every August, with an average gain of 3.9% - the highest average monthly increase of the year.

In terms of valuation, the sharp decline in July has brought the VN-Index’s valuation to an attractive level. Excluding Vingroup-related stocks, the index’s price-to-earnings (P/E) ratio has fallen to around 10.5 times, equivalent to the level seen when the market was affected by tariff-related concerns. Lower valuations are expected to encourage cash inflows back into the market, including foreign capital.

MBS expects the VN-Index to target 1,800 points in its base-case scenario and 1,850 points in a more positive scenario, while placing support at the 1,600-1,650 point range. The brokerage recommends investors prioritize stocks that have undergone deep corrections, including securities firms, real estate companies, retailers, state-owned banks, oil and gas firms, steelmakers and logistics companies.

Meanwhile, An Binh Securities (ABS) forecasts the VN-Index could return to an uptrend and test the 20-day moving average, corresponding to the 1,760-1,763 point range. The market is also entering a short-term consolidation phase, with downside risks gradually easing. Investors may consider gradually increasing stock exposure to a maximum of 50% of their portfolios and prioritizing purchases during market corrections.

Five drivers supporting the market in August

According to MBS, several favourable factors could help the market continue its recovery momentum in August.

First, the easing of regulations on counting State Treasury deposits in the loan-to-deposit ratio (LDR).

Starting from August 1, adjustments to the treatment of State Treasury deposits when calculating LDR are expected to provide banks with additional lending capacity. State-owned lenders, particularly Vietcombank (VCB), BIDV (BID) and VietinBank (CTG), are expected to benefit the most.

MBS said the measure is a necessary policy tool to support the Government’s target of economic growth above 10%, while also encouraging banks to improve capital management capabilities.

Second, the first extraordinary session of the 16th National Assembly.

The session, taking place from August 3-24, 2026, will discuss many important issues, including 24 draft laws and resolutions. Notably, amendments to the Land Law, Housing Law and Real Estate Business Law are expected to help remove legal bottlenecks and unlock resources for the property market.

Third, the FTSE Russell index review.

On August 21, 2026, FTSE Russell is expected to announce the official list of Vietnamese stocks meeting criteria for inclusion in the FTSE Global Equity Index Series (FTSE GEIS) during its September semi-annual review. The event has attracted significant attention from investors as it could affect foreign capital flows.

Fourth, positive second-quarter earnings growth.

As of July 29, 2026, 672 out of 1,525 listed companies and banks, representing 38.9% of total market capitalizaation, had released financial statements or preliminary estimates for second-quarter results.

Total after-tax profit increased 25.6% year-on-year. Although lower than growth rates recorded in the previous three quarters, earnings growth remained strong, supported by non-financial companies, whose profits rose 36.1%, while financial firms posted 10.7% growth.

Fifth, increasing insider share purchases.

Recently, executives at several companies have registered to buy large amounts of shares, including VCI, PDR, VBB, KDH and MWG.

The move is viewed as a signal of management confidence in business prospects and stock valuations following the recent market correction.