Vietnam Stock Market Valuation Trends and Corporate Dividends

More than 200 stocks on the Vietnamese market are currently trading at low price-to-earnings (P/E) valuations, signaling a broad segment of the exchange that may be priced below historical averages. This valuation environment coincides with significant capital distribution moves by major domestic enterprises, drawing investor attention to corporate liquidity and growth prospects.

Corporate liquidity and dividend shifts

Viettel Global (VGI) has set September 15 as the registration date for a 33% cash dividend payout, requiring a total expenditure of 10,000 billion VND [1]. This distribution represents nearly 89% of the company's net profit from the previous fiscal year [1]. The move follows a period of record performance for the firm, which saw net revenue reach 44,271 billion VND—a 25% increase—and net profit rise by more than 56% [1]. Viettel Global’s growth trajectory persisted into the first half of 2026, with net profit climbing nearly 94% year-over-year to 6,333 billion VND [1].

The company maintains a robust financial position, holding 10,934 billion VND in cash and equivalents alongside 32,800 billion VND in term deposits as of June 30, 2026 [1]. While total liabilities increased to 52,322 billion VND, the firm's financial debt remains relatively low at 5,364 billion VND compared to its total asset base of 92,526 billion VND [1].

Banking sector M&A speculation

In the banking sector, Techcombank has recently been the subject of market speculation regarding potential stake acquisitions by foreign entities, including BNP Paribas and KB Kookmin Bank [2]. Reports suggested the bank is aiming for a valuation of approximately two times its book value, a level that would price a 15% stake at roughly 2 billion USD—a 55% premium over its current market valuation [2].

However, both BNP Paribas and KB Kookmin Bank have clarified their positions, with BNP Paribas explicitly denying any plans to purchase shares [2]. Techcombank, which reported a 22.5% increase in pre-tax profit to 18.5 trillion VND for the first half of 2026, continues to serve over 18 million customers [2]. With foreign ownership currently at 20.5% against a 30% limit, any future strategic partnership would require either the acquisition of existing foreign-held shares or a significant capital increase [2].

What to watch

• Foreign Ownership Limits: Monitor whether Techcombank pursues a capital increase or seeks to reallocate existing foreign room to accommodate potential strategic partners [2].
• Dividend Payment Date: Track the October 15 payment date for Viettel Global to observe the impact of the 10,000 billion VND liquidity injection on the broader market [1].
• Valuation Compression: Observe if the 200+ stocks identified with low P/E ratios see increased institutional interest as companies continue to report earnings growth in the second half of 2026.

The current market landscape reflects a tension between attractive valuation multiples in a large segment of the exchange and the high premiums sought by major financial institutions during potential M&A negotiations. Whether these low-valuation stocks provide long-term value or reflect underlying sector risks remains the primary question for market participants.