HoSE launches index for large private-sector stocks

HoSE launches index for large private-sector stocks

VNPRIVGRO comprises 30 stocks selected from the VNAllshare basket.

Investors watch the stocks' performances on a digital screen at the Hochiminh Stock Exchange. — VNA/VNS Photo

The Hochiminh Stock Exchange (HoSE) has introduced the Vietnam Private Growth Index (VNPRIVGRO), a new stock index designed to track large private-sector companies with liquid shares and growth potential.

The index was developed by HoSE in cooperation with a fund management company under the investor restructuring and securities investment fund development scheme approved under Ministry of Finance Decision No. 3168/QĐ-BTC dated September 12, 2025.

The initiative was implemented following directions from the State Securities Commission and approval from the Vietnam Stock Exchange.

VNPRIVGRO comprises 30 stocks selected from the VNAllshare basket. Constituent stocks must meet screening requirements related to liquidity and State ownership, with State shareholders holding no more than 15 per cent.

To ensure portfolio diversification and limit concentration in individual sectors, the index caps the number of constituents from each GICS Industry Group at eight stocks.

Like other investment indices operated by HoSE, VNPRIVGRO is calculated using a market-capitalisation-weighted methodology adjusted for free-float. It also applies market-capitalisation weight limits to maintain the investability and representativeness of the portfolio.

The maximum weight is set at 10 per cent for an individual stock, 15 per cent for related stock groups and 40 per cent for stocks belonging to the same GICS Industry Group.

The constituent portfolio will be reviewed twice a year, in January and July, while periodic information will be updated quarterly in January, April, July and October.

The results of each review will be announced on the first Monday of the month following the review and take effect from the third Monday of that month.

HoSE said VNPRIVGRO was developed to reflect the performance of large private-sector companies, whose role in Việt Nam's economy has become increasingly important.

The index is intended to provide investors with a benchmark for monitoring the performance of private-sector companies while creating a basis for the development of thematic index-based investment products.

The exchange said the index could also contribute to diversifying investment choices and improving private-sector companies' access to capital flows.

Bizhub