Vietnam Stocks: Narrowing Liquidity, What Should Investors Watch?

The Vietnamese stock market is currently navigating a period of subdued liquidity, a trend that warrants careful attention from investors. While the market experienced a robust recovery in mid-2025 following a similar lull, the current cautious sentiment suggests that a repeat performance may not be immediate.

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Liquidity is the key factor in determining market trends. In fact, the trading volume in recent months has narrowed rapidly compared to the peak at the end of last year, bringing the level back to that of early 2025.

The narrowing trading volume, now comparable to early 2025 levels, indicates a hesitant investor base. This is particularly evident following the recent holiday break, where the anticipated surge in trading activity has yet to materialize. The lack of sustained buying pressure means that many stocks are struggling to gain upward momentum, even those reporting positive first-quarter earnings.

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This is a 'minus point' from a short-term perspective.

A key factor influencing the market's direction is the activity of foreign investors. In a market with reduced liquidity, their buying and selling decisions carry amplified weight. While the net selling pressure seen earlier in 2025 has eased, their trading remains a significant determinant of short-term price movements. This makes close monitoring of their strategies essential for domestic investors.

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In the current context, investors should prioritize monitoring the actions of foreign investors because when the market trading volume narrows, the impact of their buying and selling on stock prices becomes more apparent.

From our perspective at Tuổi Trẻ, understanding these dynamics is crucial for making informed investment decisions. While long-term prospects for the Vietnamese economy remain positive, the current market requires a strategy focused on risk management and a keen awareness of both domestic and international investor sentiment. The market's ability to break through resistance levels will depend heavily on a renewed influx of capital and a more confident investor outlook.

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The market is difficult to break through. The sideways or volatile movement may continue to dominate.