Vietnam Insight

Highlights:

• The Prime Minister has instructed the State Bank of Vietnam (SBV) to promptly develop a roadmap and pilot the removal of credit growth limits starting from 2026.At the close on 7 August, VND interbank interest rates were: overnight at 6.73% p.a., 1 week at 6.55%, 2 weeks at 6.1%, and 1 month at 5.7% p.a.
• A total of 970 companies have announced 2Q2025 earnings, with profit growth up 33.6% YoY — the highest in 1.5 years.
• SBV Governor Nguyen Thi Hong stated: if exchange rate pressures rise sharply, the SBV will consider halting interest rate cuts.

Technical View: The VN-Index closed the week at 1,584.95 points (+89.74 points; +6% YoY) on the weekly chart, with liquidity remaining high. The index has maintained its upward trend, even reaching new highs after retesting the 20-day moving average (MA20). However, the RSI has entered the overbought zone, indicating high correction pressure and the likelihood of significant volatility.

Investment Idea: Investors should prioritize holding and taking profits on stocks that have surged sharply. There are currently few suitable mid-term entry points; new buys are only appropriate for short-term holding strategies. We still expect the energy and industrial real estate sectors to offer good buying opportunities, and anticipate that a market pullback will create a chance to re-enter financial stocks.