Vietnam’s benchmark VN-Index loses over 100 points as multiple large-cap stocks hit floor

The VN-Index fell to 1,653.44 points, down 6.43 percent.

Total trading value across the southern market reached over VND29.3 trillion (US$1.1 billion), with more than one billion shares changing hands by 11:30 am.

Within the VN30 basket, 22 stocks hit their floor prices, dragging the index down.

During the morning session, major drags were VIC, VCB, VHM, BID, CTG, GAS, TCB, MBB, VPB, and HPG.

VIC alone shaved nearly 18 points off the index, making it the single largest drag on the market.

Oil and gas stocks initially stood out as one of the few bright spots, with several stocks surging to their ceiling prices early in the session.

However, the momentum proved short-lived as broader market pressure intensified, forcing many of these stocks to narrow their gains.

By around 11:00 am, the matched order value on HoSE had stalled at just over VND24 trillion ($914 million).

Earlier in the session, liquidity had surged, exceeding VND20 trillion ($761 million) within roughly the first hour of trading.

The slowdown in trading activity showed that bargain-hunting cash flows remained limited and insufficient to absorb the large volume of shares being dumped at floor prices.

The sell-off was not confined to Vietnam.

Stock markets across Asia also experienced sharp declines during the morning session.

Japan’s Nikkei index plunged 6.8 percent to 51,815 points, while South Korea’s Kospi tumbled 7.8 percent to 5,151.44 points.

Across Southeast Asia, markets also recorded notable corrections.

Indonesia’s main indices fell more than three percent, while Malaysia’s benchmark indices declined between two and four percent.

The Philippine market faced stronger pressure, with the PSEi Composite index dropping 5.44 percent during trading.

China’s major stock indices also moved lower, reflecting increased selling pressure, although the declines were less severe than those seen in Japan and South Korea.

The Shanghai Composite fell more than 1.1 percent, while the SSE 100 recorded the sharpest drop at around 2.73 percent.

Vietnam’s other two indices also plunged sharply, with the HNX-Index falling 7.58 percent and the UPCoM-Index dropping 6.58 percent.

Across the three exchanges, the number of stocks hitting floor prices reached 252, while 499 others closed down.

In contrast, only five stocks hit their ceiling price and just over 60 managed to gain, underscoring the overwhelming dominance of red across the market.

Luong Duy Phuoc, director of analysis at Kafi, said the selling pressure on Monday was unlikely to ease quickly as it reflected broader economic concerns.

He noted that rising raw material costs are increasing input expenses for businesses.

Investors tend to become more risk-averse.

“With deposit interest rates remaining high and the stock market facing rising risks, investors will reassess their portfolios and may prioritize holding cash until the impact becomes clearer,” he said.

Phuoc said that the duration of the ongoing geopolitical conflicts remains uncertain.

Currently, the market’s price-to-earnings (P/E) ratio stands around 14 to 14.5, a level that is neither particularly high nor low.

However, if the market corrects to around 1,600–1,650 points, the P/E ratio could fall to about 13.5, making valuations more attractive.

Despite the turbulence, listed companies reported relatively strong business results for the full year of 2025.

Phuoc believes the current decline is unlikely to resemble the panic selling seen during the tariff shock in 2025.

He forecast the market could fall to around 1,550–1,600 points before stronger buying support emerges.

At that level, valuations may begin to look attractive to both individual investors and investment funds.

For now, he advised caution.

Bui Van Huy, director of the investment research division at FIDT, told Tuoi Tre (Youth) newspaper that the most significant factor influencing the market currently does not stem from Vietnam’s domestic economy but from escalating tensions in the Middle East, particularly involving the United States, Israel, and Iran.

Brent crude oil prices surpassed the $100-per-barrel mark on Monday morning.

“This is a supply shock that could have prolonged and widespread impacts,” he said.

Higher oil prices could accelerate inflation, he warned.

Vietnam’s consumer price index in February rose 1.14 percent from the previous month due to heightened consumption during the Lunar New Year holiday from February 14 to 22, pushing average inflation for the first two months of the year to 2.94 percent year on year.

Core inflation has already reached 3.47 percent, a level Huy described as concerning.

With current oil price movements, inflationary pressure in March is expected to increase further.

The Middle East conflict escalated in late February after the U.S. and Israel carried out air strikes on multiple targets in Iran.

Tehran later responded with attacks on Israeli territory and missile launches targeting dozens of U.S. bases in Gulf countries, including the United Arab Emirates, Kuwait, Saudi Arabia, Qatar, Bahrain, and Oman, resulting in casualties and property damage.

Tehran declared the Strait of Hormuz, through which around a fifth of global oil consumption passes, closed and warned it would attack ships attempting to pass through it.