Vietnamese shares plunged on Monday as panic selling flooded the market, following surging COVID-19 cases, reinforcing fears of further economic pain from restrictions induced by the virus.

The State Securities Commission (SSC) has reported that Vietnam was the second-fastest growing stock market in the first half of the year, despite the fourth Covid-19 outbreak.

Stocks of technology companies are selling very well in the Vietnamese stock market.

After struggling to find direction, the market hit a new record on the back of bank stocks in the last trading session. Analysts from securities firms said that this will be the driving force for the VN-Index to head toward 1,400 points. 

Chairman of Phat Dat Real Estate Group, Nguyen Van Dat, and the Chairman of Novaland, another real estate group, Bui Thanh Nhon, have become the latest people who own stocks worth over $1 billion.

The stock market is still an attractive investment channel for investors in the near future. However, it also poses many challenges for regulators and market members, said experts.

The flow of money from several hundred thousand newly-opened accounts into the stock market has expanded the pockets of Vietnamese billionaires by hundreds of millions of US dollars in a short time.

The nearly decade-long war for power at the Vietnam Export Import Commercial Joint Stock Bank (Eximbank) may be coming to an end. 

The VN-Index has been in the top of the world's strongest stock indexes since the beginning of the year with an increase of more than 16%. Over the past year, the index has increased by nearly 50% despite the Covid-19 pandemic.

The flow of international capital has helped Vietnamese businesses grow quickly and build multi-sectoral businesses via big mergers and acquisition deals.

Vietnam’s stock market made a spectacular breakthrough in the first months of the year with the VN Index staying at the 1,200 point threshold and some blue-chip prices strongly increasing.

Vietnam’s stock market remained among the world’s best performers in the first five months as the benchmark Vn-Index rose by 16.31% against early 2021 to 1,283.93 points at the close on May 21, according to StockQ.

Statistics by securities companies show that in 2020, foreign investors had net sold more than VND39 trillion in the stock market. 

For 2021, the firm expected Vn-Index to fluctuate in range of 1,070-1,250.

Vietnam’s stock market recorded a weekly gain despite a decline of the market benchmark in the last session. 

The enterprises of billionaires Pham Nhat Vuong, Ho Hung Anh, Nguyen Dang Quang and Nguyen Thi Phuong Thao have reported good business results for 2020.

Shares bounced back slightly in the afternoon trade but the VN-Index still lost 60.94 points, or 5.11 percent, closing the January 19 session at 1,131 points.

The fact that interest rates are still very low, will help the local stock markets continue to be an attractive and profitable channel, thereby attracting domestic investor.

Analysts from securities companies are optimistic about stock market movement during the first trading week of this year and betting the positive trend will continue.

The first trading session of Vietnam’s stock market in 2021 opened on January 4, with a gong-beating ceremony held by the State Securities Commission and the Hanoi Stock Exchange (HNX).