Vietnam SOE Stocks Rally on Decision 40/2026 Equitization Reform

Overview

State-owned enterprise (SOE) stocks, led by GAS, surged on August 7, 2026, after the government issued Decision 40/2026 on equitization and divestment. The VN-Index rose modestly, but market breadth was mixed and foreign investors remained net sellers, indicating cautious sentiment.

Key Facts

• VN-Index closed at 1,768 points, up over 3 points from the previous session.
• GAS and BSR hit limit-up, while VNM touched ceiling price during the session.
• Other SOE stocks including BCM, SZC, ACC, L10, SC5, VSI, and SRC also hit ceiling and held gains.
• Decision 40/2026 grants more autonomy to state ownership representatives, shifting focus from administrative compliance to financial efficiency.
• HoSE liquidity rose 20% to over VND 18,100 billion, but remained low.
• Foreign investors net sold VND 59 billion, with selling pressure on VHM, TCB, VPB, and VIC.
• VIC fell 1.7% and VHM dropped 5.3%, together dragging the index by about 10 points.
• For the week, VN-Index gained 1.86%, the second consecutive weekly rise.

What Happened

SOE stocks became the main driver of the VN-Index on August 7, 2026, as buying interest rotated into the group following the government’s issuance of Decision 40/2026. The decision, which relates to equitization and divestment of state-owned enterprises, was seen as a positive catalyst. According to BIDV Securities (BSC), the new regulation gives more decision-making power to state ownership representatives, allowing them to cut losses and divest in a timely manner based on market conditions, rather than going through multiple approval layers.

Despite the rally in SOE stocks, the broader market showed divergence. While 155 stocks rose on HoSE, 137 declined, indicating uneven participation. The VN-Index closed at 1,768 points, up slightly, but the afternoon session saw increased selling pressure during the closing auction. Liquidity improved but remained subdued, and foreign investors continued to net sell, though at a reduced value of VND 59 billion.

Market Context

GAS, listed on HOSE, closed at VND 74,600 on August 7, 2026, after hitting the ceiling. The stock is part of the energy sector, which benefited from the policy news. Other SOE tickers like CTG (VND 32,500), BID (VND 39,050), and GVR (VND 29,750) also advanced. The SOE rally provided support to the VN-Index, offsetting weakness in Vingroup stocks (VIC, VHM). However, the overall market trend remains fragile due to low liquidity and persistent foreign selling, raising concerns about the sustainability of the uptrend.

Strategic Significance

Decision 40/2026 marks a shift in Vietnam’s approach to SOE reform, emphasizing financial efficiency over administrative compliance. This could accelerate the equitization and divestment process, potentially unlocking value in state-owned enterprises. For long-term investors, this policy change may improve corporate governance and profitability of SOEs, making them more attractive. However, the immediate market reaction was mixed, with foreign investors still net sellers, suggesting that structural reforms may take time to translate into sustained capital inflows.

What to Watch

• Implementation details and follow-up decrees related to Decision 40/2026.
• Quarterly earnings reports of SOE companies, particularly GAS, to assess operational improvements.
• Foreign ownership trends and any changes in net buying/selling patterns.
• Liquidity levels on HoSE; sustained low volume could signal weak conviction.
• Price action of Vingroup stocks (VIC, VHM) as they continue to weigh on the index.