Vietnam Insight

Highlights:

• By the end of May, Q2 GDP is forecast to grow by 7.67%. Overall, economic growth in the first six months reached 7.31% year-over-year. According to data from the statistics agency, this is the highest rate for the same period since 2008.
• According to U.S. sources, Vietnamese exports to the U.S. will be subject to a 20% import tariff. For goods identified as being transshipped through Vietnam, the tariff will increase to 40%. Notably, Vietnam has agreed to completely eliminate import tariffs on goods coming from the U.S.

Technical View: The VN-Index closed the week at 1,386.97 points, up 15.53 points (+1.13%), with improved liquidity. Foreign investors were strong net buyers, mainly focusing on financial services, banking, and real estate sectors. Overall, the market trend remains firmly upward as trading stays above the 20-day moving average. However, there is a possibility of a short-term correction this month (the RSI indicator has also entered the overbought zone), which could set the stage for a more sustainable uptrend afterward. 

Investment Idea: Investors should prioritize stocks trading near the 20-day/200-day moving average support. For new positions, consider groups benefiting from potential market reclassification, public investment, real estate, and banking. However, it’s still advisable to invest with a moderate allocation, as risks remain present.