Vietnam Insight

Highlights:

PC1 and many power-sector stocks dropped sharply in the trading sessions on April 23–24, despite the broader stock market remaining relatively positive. 

Target to raise stock market capitalization to 120% of GDP by 2028. 

The amended Law on Taxes was passed by the National Assembly on the morning of April 24, removing the VND 500 million revenue threshold for taxable household businesses. The Government will specify a new threshold, expected to be increased to VND 1 billion. 

The Government plans to mobilize nearly VND 970 trillion in 2026, mainly to offset the budget deficit and restructure debt.

Assessment: The market had a generally positive trading week, although most of the index gains came from the VIC group. Currently, capital flows are focusing on news from the AGM (Annual General Meeting) season. Notably, stocks like VCB, HPG, and TCB have shown positive movements. Meanwhile, the power sector has been affected by circulating news related to inspections of the 500kV transmission line (circuit 3), involving PC1 and related consulting firms, leading to a sector-wide discount.

Technical view: VN-Index closed the week at 1,853.2 (-17 points, -0.91%) on the weekly chart, with relatively moderate liquidity. The index continues to move sideways within the range of 1,680–1,860. Recent gains have been mainly driven by the VIC group, while other sectors remain at lower levels.

Investment ideas: Investors may consider increasing equity exposure compared to last week, prioritizing stocks that are still at relatively low levels and have strong Q1 earnings growth prospects. Focus areas include banks with high credit growth room and positive narratives, undervalued real estate, and steel.