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Vietnam Outlook Q3 2025 – Planting Reforms Coming Returns
Vietnam’s Strongest H1 Growth Since 2011
Vietnam recorded 7.5% GDP growth in H1/2025, the fastest since 2011, driven by robust industrial and service activity. Tariff uncertainty eased as Vietnam reached a trade agreement framework with the U.S., offering more favorable terms than regional peers. At home, Doi Moi 2.0 reforms are accelerating, targeting to thrive gross capital formation (31.7% of GDP) through infrastructure development. The push in construction activities, combined with the expectation of diverted orders lead us to the upward revision of 2025 GDP forecast from 6.3% to 6.8%.
Vietnam’s Stock Market Outlook – Q3 and Beyond
The VN-Index rose 6.9% in H1/2025, entirely led by Vingroup-related stocks. While we remain cautious on this group, we are optimistic about broader market opportunities. Valuations are attractive (11.7x forward P/E), while sentiment is supported by double digit EPS growth, upcoming IPOs, a potential FTSE EM upgrade. Global investment banks are showing interest in Vietnam stock market, and we believe this is a timely moment to stay focused and positioned for what lies ahead.
Discover the latest macroeconomic outlook and stock market trends via this video: