HOSE introduces the VNSHINE Index, highlighting companies that sustainably “bring real value to shareholders.”
On 18/11/2025, Ho Chi Minh City Stock Exchange (HOSE) has officially announced the issuance of the rules for constructing and managing the Vietnam Shareholder Interest Enhanced Index (VNSHINE).
This new index is designed to reflect a group of companies capable of “delivering sustainable returns to investors” by maintaining stable cash dividend payments, conducting share buybacks, and reducing debt levels.
VNSHINE will include a minimum of 15 and a maximum of 30 constituent stocks, selected from the VNAllshare universe and meeting all index screening criteria.
Step 1: Companies must have been listed on HOSE for at least three years prior to the review year and must maintain an average daily trading value of at least VND 10 billion.
Step 2: HOSE will then select companies with a stable dividend policy, specifically those that have paid cash dividends consistently for the three consecutive years preceding the review year.
Step 3: After passing the initial screening, the stocks will be evaluated using the Shareholder Yield Score (SSHY)—based on three components: dividend yield, share buybacks, and debt reduction.
However, companies in the Financials sector or those with negative net debt in the preceding year will not be assessed under the “debt reduction” criterion, as it is not suitable for measuring this group.
Step 4: If more than 50 stocks qualify, HOSE will select the top 50 stocks with the highest SSHY scores, then apply the following selection principles until reaching 30 constituents:
1. Priority given to stocks included in the previous index review.
2. Priority given to stocks with the highest free-float adjusted market capitalization.
If fewer than 15 stocks qualify, HOSE will add additional stocks that meet Step 1 and possess the highest cash dividend yield in the previous year until it reaches the minimum requirement.
VNSHINE is calculated based on free-float–adjusted market capitalization, with weight caps applied to maintain balance: a maximum 10% weight per stock when the index includes 20–30 constituents, and a maximum 15% weight when the index includes fewer than 20 constituents. These caps help ensure diversification and preserve representativeness.
Unlike traditional dividend-focused indices, VNSHINE does not solely emphasize dividend yield. It also incorporates factors that reflect the quality of shareholder cash flows – such as whether a company actively reduces net debt, or whether it is borrowing to pay dividends. Share buybacks are considered positive actions that return value to shareholders, while continuous equity issuance signals a different implication.
Through this approach, VNSHINE prioritizes companies that generate real, sustainable cash returns for investors, rather than those relying on accounting profits that may fluctuate or be influenced by technical recognition rules.
The introduction of VNSHINE contributes to the enhancement of HOSE’s index ecosystem and provides investors with an additional, highly relevant investment option. The index is well-suited for investors who prioritize stable dividend income and seek companies with transparent governance practices, efficient capital allocation, and minimal reliance on leverage or frequent dilutive .
Source: PHFM