Vietnam Insight

Key highlights:

State Bank of Vietnam (SBV): Will provide refinancing to banks to support liquidity. The SBV has adjusted several regulations to support credit activities and meet the economy’s capital needs, including raising the maximum share of short-term funding that can be used for medium- and long-term lending from 30% to 40%.

On August 20, the Investigation Police Agency of Thanh Hoa Provincial Police announced the results of its initial examination and investigation into a transnational diamond smuggling case.

August 21 marks the date when FTSE Russell will release preliminary review files and indicative data for the FTSE Global Equity Index Series (GEIS).

Assessment: The market received several positive developments, partially easing investor sentiment. Notably, information from PNJ indicated that the violations were personal in nature and unrelated to PNJ’s supply chain, sending the stock to its ceiling price from the morning session. Liquidity began to spread across multiple sectors, while positive developments in the banking sector and the list of stocks eligible for FTSE’s September 2026 review contributed to a more positive market sentiment.

Technical View: The VN-Index ended the week at 1,768.12 points (+39.34 points, +2.26%), with low weekly trading liquidity. The market’s weekly recovery was driven mainly by Friday’s session. On the daily chart, liquidity improved significantly, exceeding the 20-session average. We expect the market to break above 1,800 points if it maintains its current momentum, and if this scenario materializes, the probability of the index advancing further toward 1,900 points is high.

Investment Idea: Short-term investors who took advantage of lower prices may consider taking profits as the market approaches resistance levels and avoid chasing prices while the uptrend remains unclear. For medium-term positions, we continue to favor gradually accumulating stocks with attractive valuations.