Vietnam Insight

Highlights:

• USD Exchange Rate Today: Opening trading on Friday (December 27), the central exchange rate at the State Bank of Vietnam (SBV) increased, along with the USD selling price at several commercial banks. Most banks listed the USD selling price at 25,538 VND/USD. The USD Index (DXY) rose to 108.13 points.
• The SBV intervened in the forex market, selling approximately $2 billion USD to stabilize the exchange rate under the pressure of a strong USD.
• In the first half of December 2024, Vietnam’s trade balance recorded a deficit of $760 million USD. However, from the beginning of the year to December 15, 2024, the trade surplus stood at $23.57 billion USD.

Technical view: The VN-Index closed the week at 1,275.14 points (+17.64 points, +1.4%) with slightly improved liquidity. Overall, the market structure has not changed significantly, as the index recovered after testing 1,250 points and faced profit-taking pressure in the 1,280–1,300 range. If the index closes above 1,284 points next week, it is likely to advance to 1,300 points, with the 1,260-point level becoming a strong support zone for investment consideration.

Investment ideas: A short-term trading strategy would be more suitable during this period. Many stocks have reached their profit-taking targets. Short-term investors might consider selling part of their holdings and locking in profits when the VN-Index approaches the 1,300-point level. Investors can increase their positions, but should limit this to no more than 50% of their current stock holdings.