Vietnam Insight

Highlights:

• The December 2025 FOMC minutes suggest that there may be one interest rate cut in 2026.
• Mr. Le Manh Hung, Chairman of the Members’ Council of Vietnam National Industry – Energy Group (PVN), has been reassigned by the Prime Minister to work at the Ministry of Industry and Trade, and has been appointed Acting Minister of Industry and Trade.

Assessment: Over the past week, the market recorded a solid advance, led by the utilities and information technology sectors. Both domestic and international news flows have supported positive market sentiment. In particular, news regarding the appointment of PVN’s leadership had a positive impact, driving a strong weekly gain in oil & gas stocks (which are classified under the broader utilities sector). In addition, foreign investors turned net buyers during the week, likely driven by expectations of a FED interest rate cut next year, which also helped keep the index relatively stable and comfortable during the final trading week of the calendar year.

Technical view: The VN-Index closed the week at 1,784.49 points (+54.69 points; +3.69%) with slightly lower trading liquidity. Overall, the market remains in an uptrend, though sector divergence is evident, as capital flows are mainly concentrated in a few stock groups with specific catalysts. The area around 1,800 points may see short-term volatility, as the index has corrected three times previously since October when approaching this level.

Investment ideas: Short-term investors may consider participating in stocks showing strong upward signals above the MA20, such as banking stocks; however, position sizing should remain modest, as selling pressure may emerge near recent highs. Medium-term investors may view pullbacks toward the 1,720-point area as attractive buying opportunities, with a focus on the information technology or steel sectors, which are currently in a healthy consolidation phase.