VN-Index rose slightly by 0.5%, while HNX-Index gained 17.7% on a late-month THD surge. Market divergence continued to take place not only between industries but also within each sector and stock cap.

Average daily trading value across three exchanges hit VND 26,399 billion in May (+0.5% MoM). Cash flow heavily favored large-caps, especially banking stocks. With interest rates starting to ease alongside supportive news on the market reclassification, June liquidity is projected to see an improvement over May.

Foreign investors maintained their net selling trend in May, offloading VND19,593 billion, primarily targeting Banking and Real Estate stocks.

In June, MSCI will release its Market Accessibility Review and Annual Market Classification Review. It is highly likely that Vietnam will not be added to the upgrade watchlist during this review cycle. Yet, with a recent FTSE upgrade to a secondary emerging market and accelerating local stock market reforms, MSCI is expected to give positive feedback on Vietnam in its accessibility report.

The late-May downturn is highly likely to persist into the first half of June , as monetary policy faces mounting headwinds from rising inflation and exchange-rate pressures. In the latter half of the month, the VN-Index is poised to rebound, driven by supportive earnings reports, market upgrade updates, and more attractive, discounted stock valuations.