Vietnam Insight

Highlights:

• In the first two months of the year, the total registered capital for new approvals, adjustments, and equity investments from foreign investors reached nearly 6.9 billion USD, an increase of 35.5% compared to the same period last year...
• The uncertain growth outlook due to concerns about the impact of tariffs on inflation and the US economy led to a depreciation of the USD. At one point, the DXY index reached 104.29, the lowest level since November 8.
• The number of new securities accounts opened in February 2025 reached the highest level in the past four months, with nearly 150,000 new accounts.
• According to the State Bank of Vietnam (SBV), 12 commercial banks have reduced interest rates, with some banks cutting rates by an average of up to 0.7%.

Technical view: VN-Index closed the week at 1,326.05 (+20.69 points; +1.59%) with continued increased liquidity. Thus, the old resistance level of 1,300 will become a support level. During the week, the index successfully tested the 1,300 level multiple times before making a strong breakout in the last two sessions. The RSI indicator is currently above 70 and in the overbought zone, but the expected uptrend still persists. The reference resistance level is in the 1,340 – 1,350 range.

Investment ideas: Maintain the holding trend to let profits run. In an uptrend, any corrections toward support zones or EMA lines will be opportunities to buy. Expect the securities, retail and banking groups to continue receiving inflows.