The
Vietnam Stock Index or the VN Index represents the stock index of Ho Chi Minh City Stock Exchange. Vietnam has two stock exchanges, Ho Chi Minh City Stock Exchange and the Hanoi Securities Trading Center. The Vietnam stock index is a capitalization weighted index of those companies that are enlisted in the stock exchange of the country. On 28th July, 2000, this index was created with a base index value of 100.
The Vietnam stock market index is recently on a rise because of a boom in the economy and capital market of the country. In the past year, the performance of the stock exchange of Vietnam has been very good according to Fortune Magazine reports. The VI Stock Index had risen by 60%. This is also a reflection of the steady development of the economy of Vietnam. According to Fortune Magazine, the main reason behind the fuelling the stock market boom is the joining of Vietnam in World Trade Organization.
The index has resurged because of the efforts of the government to reduce inflation, foreign buying, expectations of good earnings in industries like property and banking. The government has reduced financial market liquidity and involved in price control. As on 28th September, 2007, the VN-Index has been up by 3.23% or 32.77 points. The rise has been the common factor in both the HASTC index (the index of the Hanoi Securities Trading Center) and the VN index.