The biggest breakdown in the local stock exchange since 2001 may not last long because the health crisis is not forecast to have medium- or long-term impacts on the economy.

The market calmed down on Tuesday morning after a crash on Monday, led by recovery of blue chips.

Foreign investors have net sold a total of VND3.4 trillion (US$147.7 million) in the last 20 trading days.

Vietnam's stocks saw the largest decline measured over the course of a single day since 2002 as investors grow fearful of the economic fallout from the COVID-19 outbreak, coupled with the global oil price war.

Viet Nam’s benchmark VN-Index plummeted 6.28 per cent on Monday, its worst daily loss in the last 19 years, to 835.49 points as investors were alarmed with widespread slumps on the global markets.

It is expected the Vietnamese stock market will be less volatile in March compared to the previous months.

Vietnamese shares plunged on Monday morning, in line with the global downturn, as the spread of the novel coronavirus (COVID-19) worsened around the world outside China, sending investors to safe-haven assets like gold.

The Vietnamese stock market would struggle to hold on to its threshold as analysts are afraid the market sentiment could worsen after new coronavirus-infected cases were reported over the weekend.