Vietnam Insight

Highlights:

• In the draft of the revised Personal Income Tax Law currently open for public consultation, the Ministry of Finance proposes a 20% tax rate on taxable income for resident individuals transferring securities. 
• In addition, the Ministry also proposes to collect a 20% tax on each real estate transaction.
• U.S. President Donald Trump has just signed a retaliatory tax executive order targeting 69 trade partners, in which Vietnam will officially be subject to a 20% tax, effective from August 7.

Technical View: The VN-Index closed the week at 1,495 points (-35.92 points, -2.35%) on the weekly chart with peak liquidity, while foreign investors recorded strong net selling. The next reliable support zone is around the 50-week MA, corresponding to 1,400–1,450 points. We expect the market to correct down to this range to form a new base.

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.