Vietnam Insight

Highlights:

• On February 3rd, US President Donald Trump unexpectedly delayed the implementation of a 25% tariff on goods from Canada and Mexico for another month.
• In Q4/2024, the market's after-tax profit grew by 20.9% compared to the same period last year, maintaining a stable growth rate for the fourth consecutive quarter. Some industries saw significant growth in Q4/2024, contributing positively to overall growth, including Real Estate and Retail.
• The Vietnam manufacturing PMI index reached 48.9 points in January 2025, down from 49.8 points in December 2024.

Technical view: The VN-Index closed the week at 1,275.2 points (+10.15 points; +0.8%) with liquidity showing good improvement over the last two weeks. Foreign investors were net sellers by more than 4 trillion VND last week. The banking sector's recovery led the market's rebound, though the rally was relatively weak in breadth. We expect profit-taking pressure to emerge around the 1,280–1,300 range next week.

Investment ideas: A short-term trading strategy is more suitable during this phase. Investors can consider entering positions around 1,240 points and gradually take profits as the index approaches 1,300 points. The banking sector may be worth considering.