Vietnam Insight

Key highlights:

• FTSE Russell announced its semi-annual review, adding 27 Vietnamese stocks to the FTSE All-Cap Index. Six stocks — VCB, VIC, VHM, BID, HPG, and VPB — were also included in the FTSE All-World Index, potentially attracting more than USD2 billion in foreign capital inflows.
• The National Assembly approved the revised Petroleum Law, with 94.6% of delegates voting in favor. The new law is expected to take effect from March 1, 2027.
• Several Vietnamese banks are accelerating plans to raise capital and attract foreign strategic investors, supporting capital strength and potential foreign inflows.

Assessment: The VN-Index broke above the 1,800-point threshold amid a series of positive catalysts, most notably growing expectations surrounding FTSE’s potential market upgrade. These developments have improved investor sentiment and encouraged capital to rotate toward blue-chip stocks and index heavyweights, providing a key driver for the VN-Index’s recent breakout and helping sustain the upward trend.

Technical View: VN-Index ended the week at 1,832.12 points, up 64 points (+3.62%), with trading liquidity remaining around the average level. Following a strong breakout, the index has moved into the 1,830–1,850 resistance zone, where profit-taking pressure and short-term volatility may increase. However, if the VN-Index continues to break through key resistance levels, supported by improving liquidity and broader market participation, the uptrend could be further reinforced, opening up room for the index to advance toward the 1,900-point level.

Investment Idea: Investors should remain patient and wait for low-volume pullbacks to identify attractive entry points. Focus on undervalued stocks that have lagged the broader market but offer solid fundamentals and positive growth prospects, while avoiding FOMO and chasing overheated stocks. Maintain disciplined position sizing and a reasonable cash buffer to manage risk and capitalize on market corrections.