Vietnam Insight

Highlights:

• The government has revised its GDP growth target for this year to 8.3–8.5%, aiming to lay the foundation for double-digit growth in the upcoming period. According to expert estimates, credit growth will need to reach 17–18% to meet this goal.
• The Prime Minister has directed that issues with renewable energy projects must be resolved before July 25. However, EVN and investors have yet to agree on a solution.

Technical View: The VN-Index closed the week at 1,531 points (+33.85 points, +2.26%) on the weekly chart, with liquidity and index levels both hitting new peaks. Foreign investors net sold heavily this week, mostly in VJC, although it was also a key driver in the surge of the tourism and entertainment sector. The market’s main trend remains upward, but correction pressure is building (RSI indicator is at 80).

Investment Idea: Investors are advised to prioritize holding and taking profits on stocks that have experienced sharp gains. At present, there are few attractive entry points for medium-term positions; new entries are only suitable for short-term holding strategies. We remain optimistic about the energy sector and industrial real estate stocks, which still offer good buying opportunities. Additionally, we expect that any market correction will create a chance to re-enter the financial sector.