The Presence of Speculative Bubbles in the Vietnamese Stock Market for the Period of 2006-2021

Abstract

The stock bubble has a strong impact on the stock market in particular and the economy - finance in general. Testing for the presence of stock bubbles is very necessary and important to minimize damage to the social life of Vietnamese people. The paper is conducted to achieve at two objectives, the first one is to find out the periods of the stock bubble from 2006 to 2021 at HOSE and HNX, the second one is to test the similarities in the stock bubble phenomenon at these two exchanges. To achieve the above objectives, the research applies the SADF and the GSADF test approach. The results show that, in 16 years of testing (2006-2021), there are 9 years on the stock bubble stage and there have the similarities in the stock bubble phenomenon of both VN-Index and HNX-Index. From these results, the paper suggests some policy implications for the sustainable development of the Vietnamese stock market.