Vietnam Insight

Highlights:

• In two consecutive trading sessions on January 3 and January 6, the State Bank of Vietnam (SBV) sold spot USD at a rate of 25,450 VND and simultaneously offered forward contracts (with optional cancellation rights) at the same rate of 25,450 VND.
• The DXY Index hit 109. The USD strengthened, and the 10-year Treasury yield reached its highest level in eight months following the latest jobs report, which indicated a robust US economy.
• The S&P Global US Services PMI was revised lower to 56.8 in December 2024 from a preliminary 58.5, but remained higher than 56.1 in November, marking the strongest growth in the services sector since March 2022.

Technical view: The VN-Index closed the week at 1,230.48 (-24.11 points; -1.92%) with slightly improved liquidity but remained in a downtrend. The index saw a sharp drop of more than 15 points during Friday’s session. Foreign investors maintained net selling throughout the trading week. The lack of new cash flow has made it difficult for the index to sustain its upward momentum, with no leading sector driving the market. Consequently, the market has officially breached the 1,240 support level and is likely to test the 1,220 zone.

Investment ideas: A A short-term trading strategy is more appropriate during this period. Investors should wait for the index’s reaction in the 1,200–1,220 zone; if a strong bullish candlestick pattern forms, it could signal new buying opportunities in this range.