Hanoi Metro Project News Fuels Vingroup Rally, VN-Index Jumps 1.83%

Vietnam’s benchmark VN-Index posted a strong recovery on Monday, snapping a four-week losing streak as shares linked to conglomerate Vingroup surged on news of major infrastructure contracts in Hanoi.

At the close of trading, the VN-Index on the Ho Chi Minh Stock Exchange (HoSE) was up 33.38 points, or 1.83%, at 1,858 points. Despite the benchmark's significant gain, overall market breadth remained negative, with 183 stocks declining versus 133 advancers. Liquidity also contracted from the previous session, with total trading value falling to VND14.6 trillion (US$554 million) from nearly VND19 trillion recorded last Friday.

The day's rally was heavily concentrated in shares of Vingroup (VIC) and its real estate arm, Vinhomes (VHM). Both stocks closed at their ceiling prices, with Vinhomes shares hitting the maximum daily gain of 7%. They jointly accounted for over VND1.5 trillion in trading value, ranking first and second in market liquidity and contributing a combined 34.14 points to the VN-Index's advance.

The primary catalyst was an announcement from the Hanoi People's Committee, which held a ground-breaking ceremony on Monday morning for five urban rail lines and three rental housing projects. The five metro lines are planned to have a total length of approximately 303.5 km, with a preliminary total investment exceeding VND1.3 quadrillion. A consortium comprising Vinhomes and VinSpeed was assigned as the EPC contractor for the entire project. The new lines are slated to connect key strategic growth nodes including Nội Bài airport, Hà Nội station, Ngọc Hồi, Hòa Lạc, Cổ Loa and Ocean Park.

This information triggered renewed upside expectations across the Vingroup ecosystem, particularly under the transit-oriented development (TOD) model, where transport infrastructure development is expected to lead to stronger increases in land and real estate value.

Elsewhere, sector performance was sharply differentiated. The broader real estate sector was covered in red, with the notable exception of the Vingroup-related stocks. Oil and gas was singled out as the only sector showing broadly positive momentum, aligned with global crude oil trends. Shares of PV Power (POW), PV Drilling (PVD), and Petrovietnam Refining and Petrochemical Corporation (BSR) each accumulated gains of more than 1%. In contrast, on the Hanoi Stock Exchange (HNX), the HNX-Index fell 3.77 points, or 1.16%, to close at 321.06 points.

Foreign investors remained net sellers on the day, offloading shares worth over VND176 billion on HoSE and VND31.36 billion on HNX.