Vietnam Insight

Highlights:

Vietnam recorded a trade deficit of USD 16.66 billion in the first half of 2026, ending a five-year streak of consecutive trade surpluses on a comparable-period basis.

Dragon Capital’s VEIL Fund received sell registrations exceeding the allocation limit in its share repurchase offer.

The US launched fresh airstrikes on Iran just hours after President Donald Trump threatened further escalation if Iran failed to stop attacking vessels in the Strait of Hormuz.

PNJ established a special oversight committee following the arrest of the former Director of P-Lab.

Assessment: The negative news surrounding PNJ weighed on investor sentiment, sending the stock to three consecutive limit-down sessions. Although it staged a brief rebound afterward, the stock resumed its decline. While the impact has not spread broadly across the market, it has been sufficient to dampen sentiment at a time when the market lacks strong supporting catalysts. Meanwhile, developments surrounding the VEIL Fund suggest that selling pressure from this investor group is likely to persist through the remainder of the year.

Technical view: The VN-Index closed the week at 1,828.3 (-33 points, -1.81%) on weak liquidity. Market breadth continued to narrow as more stocks fell below key moving averages. Overall, there has been no meaningful change in the market's trend or liquidity conditions.

Investment Ideas: Investors may consider accumulating stocks that continue to trade sideways or have experienced only modest pullbacks while maintaining solid earnings growth, with a medium-term investment horizon. We do not recommend increasing short-term trading exposure or chasing rallies, as weak market breadth could make recent gains less sustainable.