Vietnam Stocks Face Correction as VN-Index Drops Below 1800 Points

On September 23, Vietnam's VN-Index closed down 15.28 points, or 0.84%, at 1,801.65 points, just above the psychological support level of 1,800 points. The Ho Chi Minh Stock Exchange (HoSE) saw a negative breadth, with 169 stocks declining, 127 rising, and 62 remaining unchanged, indicating selling pressure. This trend follows recent fluctuations. On September 22, the VN-Index had gained 17.26 points, but market liquidity decreased. On September 21, it fell 15.99 points with trading volume down 29.1% from the previous session. During the week of September 14-18, the VN-Index decreased by 7.11 points on the final day, though weekly liquidity increased. Vietnam's economy continues to show robust growth, attracting significant foreign direct investment. However, global inflationary pressures, monetary tightening policies, and geopolitical risks are factors influencing the stock market. Under its one-party system, the Vietnamese government aims to balance economic growth with price stability, employing monetary and fiscal policies to stabilize the market. While economic ties with China are strong, tensions also exist, particularly concerning issues like the South China Sea. These complex factors are likely contributing to the stock market's volatility.