While technical indicators of cash flow show no signs of overheating, the VN-Index might experience short-term volatility as mounting profit-taking pressure begins to weigh on the market. Forward P/E back to 10-year average Since the start of 2025, global stock markets have entered a robust growth phase, with many indices surpassing their previous peaks. This upward momentum has not been limited to developed and emerging markets—it has extended to frontier markets as well. Against this backdrop, the VN-Index’s gain of over 30% in the first eight months of the year appears to be part of a broader trend, rather than an exceptional occurrence. In terms of valuation, Vietnam’s stock market remains relatively attractive, according to a recent report by SSI Research. The forward price-to-earnings (P/E) ratio currently stands at approximately 13.2—on par with both the regional average and the VN-Index’s historical mean over the past decade. This level is significantly below the peaks of 15–17 observed during the bullish cycles of 2017–2018 and 2020–2021, as noted by Bloomberg. Moreover, despite offering stronger prospects for earnings and return on equity (ROE) growth, Vietnam’s market is still trading at valuations that are either lower than or comparable to the MSCI Emerging Markets […]