Vietnam Insight

Highlights:

• On May 8, President Trump announced that the U.S. had signed a bilateral trade agreement with the UK, marking the first deal since the wave of global tariffs. Under the agreement, the U.S. will remove tariffs on UK steel and aluminum exports and grant a 10% tariff quota (down from 27.5%) for 100,000 UK cars exported to the U.S. per year.
• On behalf of the Politburo, General Secretary Tô Lâm has just signed Resolution No. 68-NQ/TW dated May 4, 2025, on the development of the private economy. The Government Portal respectfully introduces the full text of this Resolution.

Technical view: The VN-Index closed the week at 1,267.3 (+41.0 points; +3.34%) with low liquidity. The market's gain was mainly driven by the VIC, VHM, and VRE group, while capital flow into other sectors remained relatively weak. The index has clearly returned to the pre-tariff equilibrium trading zone and moved above the 200-day EMA. However, the main trend remains sideways.

Investment ideas: Long-term investors may consider disbursing into stocks with solid fundamentals that benefit from domestic internal drivers such as steel, banking, securities, and energy. However, the allocation to stock should be reduced as many stocks have already recovered significantly from their bottom levels.