Vietnam Insight

Highlights:

• General Secretary Tô Lâm has signed and promulgated Resolution No. 79-NQ/TW dated January 6, 2026, issued by the Politburo on the development of the state-owned economy.
• The Ministry of Finance is currently seeking broad public feedback on a draft Decision by the Prime Minister regarding criteria for classifying state-owned enterprises and enterprises with state capital undergoing capital restructuring. The draft proposes specific classification criteria and defines the applicable entities.

Assessment: Over the past week, the market started the 2026 calendar year with a strong positive performance and relatively broad-based momentum. Capital flows were particularly robust in the oil & gas, utilities, and insurance sectors. Notably, many state-owned enterprises are benefiting from expectations of divestment in the near term, as well as broader policy support for the development of the state-owned economy under Resolution 79.It can be observed that capital is concentrating in stocks sharing the same investment narrative, rather than moving uniformly across entire sectors. A clear example can be seen in the banking sector, where state-owned banks such as CTG, BID, and VCB recorded strong gains, while ACB, STB, and HDB underperformed significantly.

Technical view: The VN-Index closed the week at 1,867.9 points (+83.41 points; +4.67%), with trading liquidity improving markedly. Overall, the market remains in a strong uptrend and currently faces no significant technical resistance levels. Foreign investors continued to post net buying during the first trading week of the year. The former resistance zone around 1,800 points has now turned into a new support level for this upward move.

Investment ideas: Short-term investors should consider taking profits in overheated stocks, particularly in the oil & gas, utilities, and insurance sectors, where correction pressure is elevated. For medium-term positioning, investors may begin accumulating stocks in the securities, steel, and technology sectors, as these groups have yet to participate meaningfully in the current rally.