Foreign investment fund PYN Elite, a long-term investor focused on the Vietnamese market, has updated its strategy and raised its target for the VN-Index to 3,200 points.
In a recent letter to investors, the fund noted that around a decade ago, when it first established its country allocation strategy, it set a long-term VN-Index target of 2,500 points. The revised target reflects the index’s current level near 1,650 points and the fund’s optimism about Vietnam’s growth trajectory.
PYN Elite cited several fundamental drivers for the upward adjustment. These include the Vietnamese government’s development roadmap, large-scale infrastructure projects expected to stimulate new growth and attract private investment, and the rapid modernization of the financial market. Additionally, continued credit expansion is supporting economic growth, helping corporate profits maintain robust momentum.
Looking at historical valuations, the VN-Index’s price-to-book ratio has surpassed 3.0 on three occasions over the past 15 years. Over the long term, the market’s average price-to-earnings ratio hovers around 16 times, with three periods exceeding 20 times. PYN Elite’s new target is based on an expectation of average corporate profit growth of 18–20% in the coming years, with 2025 potentially exceeding 20%.
Earlier in September 2025, PYN Elite highlighted that Vietnam’s market still has room for upside, supported by profit growth and reasonable valuation levels. Bloomberg forecasts suggest a projected 2026 P/E of 11.8 times for the Vietnamese market, a valuation considered attractive for a fast-growing economy.
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