Vietnam Insight

Highlights:

• At the Bloomberg Businessweek Vietnam conference held in Ho Chi Minh City on December 5, Wanming Du, Director of Index Policy at FTSE Russell, shared promising figures regarding the potential market upgrade.
• Vietnam collaborates with NVIDIA to establish two AI development centers. This partnership results from an agreement signed between the Vietnamese government and NVIDIA.
• Preliminary data shows Vietnam's trade surplus for November 2024 at USD 1.06 billion. For the first 11 months of 2024, the trade surplus reached USD 24.31 billion (compared to USD 26.2 billion in the same period last year).

Technical view: The VN-Index closed the week at 1,270.14 (+19.68 points; +1.82%), with significantly improved liquidity, mainly due to Thursday's session. Several sectors saw good growth, particularly media and insurance. Foreign investors recorded a net sale of around VND 200 billion during the week (including Friday’s session). However, the index's trend remains unchanged as it continues trading within the 1,200–1,300 range, and this was not a breakout session.

Investment ideas: Many stocks have reached their target profit-taking levels. Short-term investors can sell a portion of their holdings and take profits on the remainder as VNINDEX approaches the 1,300 level. Investors may consider increasing their positions but should not exceed 50% of their current stock holdings. New purchases should be avoided until the index decisively breaks above 1,300 or retests the 1,200–1,220 range.