Vietnam Insight

Highlights:

• On the first trading session of the new year (January 2, 2025), the State Bank of Vietnam (SBV) issued a total of VND 18,850 billion in treasury bills. On the other hand, the maturity volume for January 2 was VND 15,000 billion, resulting in a net withdrawal of VND 3,850 billion through the treasury bill channel.
• On the morning of January 2, 2025, S&P Global released the Manufacturing Purchasing Managers' Index (PMI) report for Vietnam for December 2024, highlighting three key points: Production output and new orders increased weakly, business confidence dropped significantly, employment continued to decline.

Technical view: The VN-Index closed the week at 1,254.5 (-20.55 points; -1.61%), negating last week’s bullish candlestick on the weekly chart. Declining liquidity indicates a lack of new cash flow into the market. Foreign investors returned to strong net selling on Friday, with a value exceeding VND 700 billion. The market is expected to react at the support zone of 1,240–1,245. If the index convincingly rebounds here, it is likely to break through 1,280. However, if it breaches this zone, the index may fall back to 1,220.

Investment ideas: A short-term trading strategy is more suitable during this period. Investors should prioritize observing the reaction at the 1,240 zone to act according to their predefined scenarios. If a recovery occurs at 1,240, it may provide a new buying opportunity; otherwise, wait for the 1,220 zone.