Experts recommend caution as Vietnam's stock market searches for bottom

Trinh Thanh Can, CEO of KAFI Securities, said the market remains in a challenging phase as fresh capital continues to be limited.

Trading activity is largely among existing investors, with fewer newcomers compared to previous cycles.

He said the trend reflects cautious sentiment amid domestic and global economic uncertainties.

High interest rates remain a major pressure point, as global central banks maintain tight monetary policies.

“High interest pushes money toward safer assets and raises funding costs for businesses. This reduces market expectations compared to before,” Can explained.

He added that the current difficulties are not short-term and the market is searching for a new equilibrium before any sustainable uptrend can form.

The KAFI leader believed the market is still in the process of forming a bottom.

Although valuations of many stocks have become more attractive following the prolonged correction, he said that alone is insufficient to trigger a strong recovery without further support from macroeconomic conditions and corporate earnings.

Foreign capital expected to stabilize

Experts anticipated that foreign investors' net selling pressure would ease significantly compared with the past three years.

However, the extent of any improvement will depend on factors such as global interest rate trends and economic outlooks, as well as Vietnam's appeal to overseas investors.

Bui Van Huy, deputy CEO of FIDT Investment Consulting and Asset Management JSC, said the stock market’s role must expand as Vietnam targets double-digit growth from 2026 to 2030.

“Vietnam’s stock market needs to become an effective channel for medium- and long-term capital, not just short-term speculation,” he asserted.

Despite recent turbulence in both the equity market and the corporate bond market, Huy remains optimistic about the long-term outlook because of the country's substantial financing needs over the coming years.

Investment strategies

With the market still in an accumulation phase, experts recommended maintaining a cautious investment strategy.

Investors should consider gradually allocating capital to short-term opportunities but avoid heavy exposure upfront.

Monitoring macro signals, interest rates, and foreign capital trends is essential.

Chau Dinh Linh, a lecturer at the Ho Chi Minh City University of Banking, said investing must balance returns with capital safety.

“Don't let yourself become trapped by the mindset of regretting missed profits while feeling overwhelmed by losses,” Linh said.

He advised investors to define their financial goals, assess risk appetite, and diversify portfolios.

Linh described his own layered approach, including defensive assets like cash and gold; fixed-income assets such as bank deposits and rental properties; higher-risk assets like equities, managed with partial profit-taking or stop-loss strategies; and corporate bonds as an additional layer.

Pham Ngoc Nam, technology director at WiGroup, highlighted the influence of U.S. monetary policy.

With the U.S. Federal Reserve keeping rates high and trade tensions persisting, Vietnamese investors must closely track international developments.