Vietnam Insight

Highlights:

Credit growth reached 13.5% by the end of 2023. The State Bank of Vietnam (SBV) has allocated all credit room to banks from the beginning of 2024. The target for credit growth in 2024 is about 15%, and it could increase if the economy stabilizes.

GDP in 2023 increased 5.05% from the previous year. This growth rate, although not meeting the target, is still very positive in the context of the general difficulties of the global economy. At the end-of-year session in 2023, the National Assembly set a target of 6-6.5% GDP growth for 2024.

Technical view: The first trading week of 2024 saw good growth for the VNINDEX, closing at 1,154.7 (+24.75 points, +2.19%) with increased liquidity, indicating the positive sentiment of the market. This growth was mainly driven by the banking sector in the face of many positive news. Thus, the VNINDEX has confirmed a return to an upward trend in the medium term when it completely escaped the 1,130 area and the EMA 200 line. This opens up many opportunities for investors to trade. The reference support level is the 1,130 area.

Investment Ideas: Investors should continue to pay attention to sectors that benefit from this period, such as banking and securities. It is recommended to choose a buying point when the stock is starting to rise near the accumulation base and to avoid chasing stocks that have risen too much.

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