Vietnam Insight

Highlights:

• According to S&P Global's preliminary U.S. PMI data for August, recent tariffs are putting pressure on import costs and output prices, as the manufacturing sector's input price index is at its highest point in nearly three years.
• The Ministry of Industry and Trade has officially imposed anti-dumping tariffs of up to 37% on some coated steel sheet products originating from China and South Korea.
• The simultaneous groundbreaking of 250 projects and constructions with a total investment of up to 1.28 million billion dong took place across the country to celebrate the 80th anniversary of National Day

Technical View: The VN-Index closed the week at 1,645 points (+15.47 points, +0.9%). Cash flow was concentrated in the banking sector, while most other groups saw profit-taking. Overall, the uptrend is still holding, aiming to conquer the 1,700-point milestone, but large-scale corrections are unavoidable. The nearest support level is around 1,600 points, with a further level at 1,550 points. Investors should manage their risk in case the VN-Index reverses direction and breaks the trend channel support at 1,500 points on high volume.

Investment Idea: The strategic preference is to hold and be ready to sell when targets are met. If the market corrects to around 1,500-1,570 points, investors can consider a partial disbursement into stocks with good business results that benefit from the anticipated market upgrade. If institutional money doesn't return to the 1,500-1,570 point range, investors can reduce their stock allocation to manage risk. We still believe that the industrial real estate and retail sectors offer good buying opportunities as their prices haven't increased as much as the overall market. The correction is expected to create a chance to re-enter the securities sector.