Investment outlook: Where to invest in 2026?

The macroeconomic climate is expected to be positive in 2026, with the possibility of the return of foreign capital inflows and sustainable corporate profitability, according to Ms. Dang Nguyet Minh, Director of the Research Department at Dragon Capital Vietnam.

Realizing high growth targets

According to Ms. Minh, an investment-based growth model with two pillars is the most sensible and successful option for Vietnam to achieve its aim of double-digit growth in the near future. Public investment in key infrastructure comes first. Projects including new seaports, high-speed rail, urban metros, expressways, beltways, and logistics systems will drastically lower operating costs for companies. Investments in renewable energy and digital infrastructure are made concurrently, laying the groundwork for drawing in high-tech capital flows.

Capital expenditures (CAPEX) in the private sector come in second. By the end of November 2025, credit growth for the whole economy had reached about 16%, while a study of listed companies revealed that long-term debt in the manufacturing sector had grown by 12% over the same period the previous year. This was a notable improvement over the negative growth in 2023 and the single-digit growth in 2024. The tendency of companies to proactively increase production capacity and get ready for a new growth cycle is reflected in this development.

The transformation of investment plans and pledges into high GDP growth rates is mostly dependent on execution efficiency, which includes cutting down on legal processes, speeding up implementation, and optimizing capital expenditures. An essential basis for the more seamless execution of investment projects has been established by the institutional improvements advocated since 2025. It is predicted that three to four dollars of private capital may be raised for every dollar of public investment that is successfully allocated. Accordingly, 2026 is anticipated to be the "year of implementation," when resource and policy preparations start to result in 9–10% GDP growth.

Participation from the private sector is especially crucial, not only in terms of capital size but also in terms of implementation decisiveness and speed, which accelerates the development of important economic sectors with significant spillover effects and strengthens national competitive advantages.

The source of the capital is crucial. Raising funds through capital market channels, such as stocks and bonds, will become a necessary trend in order to satisfy the significant capital requirements for this period. Vietnamese companies will also need to get long-term funding from foreign investors and financial institutions. In order to enable long-term and sustainable cash flows, it is imperative that the legislative framework be further reformed, foreign access be improved (open up room), and Vietnam's standing on the international investment map be improved.

Investment opportunities

Vietnam's economy shows remarkable adaptation and endurance, continuing to emphasize its place in the global supply chain, even if 2025 is a difficult year with severe tariff shocks. Vietnam's GDP is predicted to grow by 8–8.3% in 2025, the VN-Index will rise by almost 32%, and corporate earnings will hit all-time highs.

The macroeconomic outlook is seen more favorably as 2026 approaches. As global monetary policy continues to loosen, the external environment is predicted to be stable, and there won't be any major geopolitical shocks. This will make it easier for Vietnam to take advantage of its domestic economic drivers.

According to Ms. Dang Nguyet Minh, business confidence has significantly improved, interest rates are not expected to fluctuate significantly, and the FTSE-approved market upgrade has entered a crucial phase.

However, Ms. Dang Nguyet Minh confirmed that market volatility is a necessary component. While the economy executes investment operations in an efficient and disciplined manner, it is crucial that the business sector maintains its pace of profit growth. Market corrections should be seen as opportunities rather than threats in that situation.

When considering all of the investment channels—equities, real estate, gold, bonds, and deposits—Ms. Dang Nguyet Minh thinks that, in terms of risk-reward ratio, stocks may be the most alluring. The primary supporting reasons are favorable macroeconomic conditions, the possibility of foreign capital returning, sustained corporate profit growth, and a P/E ratio of about ten times, which is relatively modest in comparison to the region. She also anticipates that major market reforms will continue to be carried out, such as the creation of a central clearing partner (CCP) that permits intraday trading and significantly increases the amount of investment space available to international investors. This helps to improve the market's liquidity and long-term appeal.

Real estate is still appealing, but because of the lessening of supply and the increase in real estate loan interest rates, the growth pace in 2026 could be slower than in 2025. In the meantime, investors must exercise extreme caution when purchasing corporate bonds due to their tremendous demand for issuance and high degree of risk differentiation. Deposits with annual interest rates of around 6-7% are better suited as a reserve asset than as a main source of investment.