Vietnam Insight

Highlights:

The US and Iran are moving closer to a one-page memorandum aimed at ending hostilities. According to two US officials and two informed sources, the White House believes the US is nearing an agreement with Iran on a framework that would end the conflict and pave the way for more detailed nuclear negotiations.

The Ministry of Agriculture and Environment has submitted Proposal No. 4204/TTr-BNNMT to the Government regarding amendments and supplements to several articles of the Land Law for inclusion in the 2026 legislative agenda.

A total of 803 companies have reported Q1/2026 earnings, with aggregate profit growth reaching 38.2% YoY.

Assessment: The market continues to maintain its bullish structure, mainly supported by the VIC-related group, pushing the index closer to its historical peak. Easing geopolitical tensions have improved sentiment across global markets, while the AGM season and strong Q1/2026 earnings have helped stabilize cash flows. In Q1, standout sectors included oil & gas, basic resources, and retail, posting impressive earnings growth of 594%, 167.2%, and 79.8%, respectively. However, stock prices have yet to fully reflect these improvements, suggesting opportunities for new capital deployment remain available.

Technical outlook: VN-Index closed the week at 1,915.3 points (+61 points; +3.3%) on the weekly chart, with liquidity recovering to pre-holiday levels and continuing to improve. The market has now approached its all-time high zone, with a high probability of breaking through as the VIC group continues its upward momentum and geopolitical tensions show signs of easing. Nevertheless, the market may experience a short-term correction next week as overbought signals have emerged within the VIC-related stocks.

Investment ideas: Investors should avoid aggressively chasing overheated stocks amid still-limited market breadth. For medium-term positioning, the focus should remain on low-base stocks with strong Q1 earnings growth, including banks with high credit growth quotas and multiple positive catalysts, undervalued real estate stocks, steel, retail, and related sectors.