Vietnam Insight

Highlights:

• On the afternoon of October 15, the State Bank of Vietnam (SBV) held a seminar on the establishment of a national gold trading platform in Vietnam.
• Fed Chair Jerome Powell signaled support for further interest rate cuts, warning: “There is no safe path.”
• On October 16, global spot gold prices rose 0.8% to 4,241.77 USD/ounce – the highest level in history. At the opening this morning, October 17, SJC gold bar selling prices increased to 152.2 million VND/tael.
• Amid China tightening rare earth exports, the U.S. unexpectedly signaled it may extend the postponement of the 100% tariff on Beijing.

Technical View: The VN-Index closed the week at 1,731.19 (-16.36 points; -0.94%) with slightly higher liquidity. During the week, the index approached the 1,800 level but then reversed due to strong profit-taking pressure from the VIN group. The overall uptrend and technical signals remain unchanged. We expect this correction to serve as a healthy rotation phase for cash flow to move into other sectors.

Investment Idea: New buying opportunities may emerge when the VN-Index retests and successfully holds the 1,700-point support level. Investors may consider focusing on stocks with strong catalysts such as beneficiaries of the market reclassification, companies with robust earnings growth toward the end of 2025, or those trading at lower valuations compared to the overall market.