The index, which tracks the performance of the Ho Chi Minh Stock Exchange (HoSE), rose 79.01 points to close at 1,756.55, its session high, as trading momentum strengthened throughout the day.

On the HoSE, 322 stocks advanced while only 27 declined, with a wave of stocks hitting their daily upper limits, including PNJ, SSI, GEX, VHM, VIC, FPT, STB, and VRE.

Trading value on the exchange reached VND33.37 trillion ($1.27 billion), with more than 1.2 billion shares changing hands - more than double the previous session and the highest level in nearly a month.

Foreign investors remained net sellers, offloading a net VND602 billion ($22.86 million) across the three bourses.

Excluding put-through transactions of Vingroup shares, however, they were net buyers by roughly VND580 billion, with net purchases seen at stocks such as HPG, FPT, ACB, GMD, TCB, SSI, and STB. Meanwhile, stocks like VIC, MBB, VCB, HDB, VGC, FRT, and BMP recorded net selling.

Market sentiment was driven by two key developments.

FTSE Russell on Tuesday confirmed the reclassification of Vietnam from frontier to secondary emerging market status, effective from September 21, 2026, as the country "meets all criteria" for the status.

Analysts at VPBank Securities estimate the move could attract at least $1.7 billion in passive inflows once Vietnamese equities are fully included in the FTSE Emerging Market Index.

Globally, easing geopolitical tensions also supported sentiment after President Donald Trump said Washington would pause planned strikes on Iran for two weeks, citing a potential basis for negotiations. Oil prices fell sharply from $108 per barrel to around $95 following the announcement.

In addition, the country's leadership elections for the 2026-2030 term have been completed. Policy visibility, according to SSI Research, has been improved with clearer medium-term direction outlined through a series of Politburo resolutions issued in 2025 and early 2026.

Vietnam’s reaffirmed goal of achieving sustained double-digit economic growth marks a shift toward structural reforms aimed at boosting productivity, scaling up the economy, and improving capital efficiency, its report said.

Reform priorities include promoting the private sector and small- and medium-sized enterprises, developing national champions, refining selective and efficiency-based foreign investment policies, and strengthening domestic capital markets as a key medium- and long-term funding channel.

Alongside these are reforms in land policy, increased fiscal flexibility, improved governance of state-owned enterprises, deeper integration into capital markets, and a focus on promoting technology, innovation, digital transformation, and enhancing the role of domestic demand.

However, SSI Research warned of rising inflation risks linked to higher energy costs following tensions in Iran. Fuel and logistics costs in agriculture rose 15-30%, pushing fertiliser and feed prices up 5-11% in the first quarter, in line with global trends.

In infrastructure, fuel price volatility could raise transport construction costs by about 8%, or up to 16% if fuel prices double, potentially adding VND42.3 trillion ($1.61 billion) to major national projects, according to the Ministry of Construction.

SSI Research expects the market to enter a more defensive consolidation phase, with selective support in early April from strong first-quarter earnings expectations and easing geopolitical tensions. Gains may fade toward the end of the month due to seasonal factors and slower profit growth in the second quarter as higher interest rates and input costs take effect.

The brokerage recommends a selective investment strategy, focusing on companies with strong Q1 earnings growth, solid balance sheets with net cash positions, and clear benefits from upgrade-related capital inflows.