July 28, 2025, marked a quarter of a century of the formation and development of the Vietnamese stock market, which has made great strides in many aspects. From a modest starting point, the VN-Index has surpassed the peak of 1,500 points after 25 years. Notably, the VN30 index set a new record of 1,669.33 points on July 25, far exceeding the peak in 2022, according to the State Securities Commission.

From just two stocks, REE and SAM, at the launch, the market has grown to more than 1,600 stocks, including 700 listed on the HSX and HNX, and nearly 900 registered for trading on the UPCoM.

In terms of capitalisation, the market has grown strongly from only 0.28 per cent of GDP at its establishment to nearly 100 per cent of GDP in 2024, covering stocks and bonds. The HSX alone has a capitalisation value of about VND5.91 quadrillion ($236 billion) with 391 listed codes, including many large corporations with capitalisation of up to billions of dollars, which affirms the market's development in both quantity and quality.

Market liquidity has also recorded steady growth. In July, the average trading volume reached about 1.2 billion shares per session, equivalent to over $1 billion, the highest in Southeast Asia, and 4-5 times higher than the liquidity in the 2000s.

This strong development has attracted more investors, especially after the Covid-19 pandemic, when securities were classified as essential goods. From only 3,000 accounts in 2000, the market had more than 10 million accounts by the end of June 2025, equivalent to about 10 per cent of Vietnam's population. The target of 11 million accounts by 2030 is likely to be completed soon.

In addition to individual investors, foreign investors also play a significant role, currently accounting for about 15 per cent of total market ownership. If Vietnam upgrades to emerging market status, foreign capital flows could increase significantly, with an estimated net withdrawal of about $1 billion from exchange-traded funds. The new IT system KRX has been put into operation, improving operational capacity and approaching international standards.

The stock market has helped businesses raise capital more quickly and easily through the issuance of shares or bonds. This contributes to production and business activities, and the expansion of scale and investment in large projects. By the end of 2024, the average total charter capital of enterprises listed on HSX reached more than VND 4.2 trillion ($168 million), more than three times compared to 2015. Within 25 years, the total value of capital mobilised through additional share issuances has exceeded VND 520 trillion ($20.8 billion).

In addition to its role in capital mobilisation, the stock market plays an important role in the equitisation process of state-owned enterprises through auctions, initial public offerings, and private offerings.

The stock market also creates a playground for investors to allocate capital effectively based on the profitability of enterprises. Thereby, the economy's resources are directed to industries and sectors with the highest development. Since 2020, the VN-Index has grown by 8.4 per cent annually, excluding dividend profits, which is better profitability than bank deposits.

Many leading enterprises from key sectors of the economy, such as banking, real estate, consumption, and manufacturing, are listed on the market. Therefore, the stock market may reflect the health of the economy, helping the government, investors, and policymakers to make appropriate decisions.

The stock market also contributes to promoting transparency, competition, and better corporate management. To participate in the stock market, listed companies must comply with regulations on information disclosure and transparency of operations. The participation of strategic investors and foreign investors also motivates businesses to learn and improve their management capacity and business efficiency from the international environment.

Talking about the achievements of the stock market over the past 25 years, Dominic Scriven, chairman of Dragon Capital, assessed that the biggest role and success of the market was to integrate, encourage, and create a foundation for other components in the economy to participate in contributing to GDP for the country's development.

"Specifically, for private enterprises that account for more than half of all listed enterprises, the scale and management models, and efficiency of these enterprises are much higher than before the market's establishment. Moreover, the stock market has played a very important role in the state-owned enterprise reform process, and the equitisation of state-owned enterprises, and encouraged them to list for more transparency and efficiency," he emphasised.

Nguyen Thi Thu Hang, CEO of VFS Securities, said that the Vietnamese stock market has grown in both quantity and quality. In the early years, development was mainly measured by the number of enterprises, scores, and accounts, but now the ability of adaption and sustainable development are more noteworthy.

"The Vietnamese stock market today has become an important component of the national financial system, mobilising medium- and long-term capital, reflecting economic expectations, and being an essential investment channel for all classes. That is the true growth, not only of the market, but also of all investors, enterprises, and management agencies," she emphasised.