Vietnam Insight

Highlights:

GDP grew by 9.95% in 3Q2026, bringing 9M2026 growth to 9.01%, approaching the full-year target of double-digit growth.

Registered FDI inflows into Vietnam reached USD 50.4bn in 9M2026, up 76.4% YoY.

AIGS announced its inspection results, confirming that 100% of the tested PNJ diamond samples were natural diamonds.

Market Assessment: Market divergence has made it difficult for the VN-Index to establish a clear uptrend. While several sectors, such as retail and oil & gas, posted strong gains, others experienced sharp declines. PNJ received some buying support this week following the announcement on Friday that 100% of its tested diamond samples were natural diamonds. However, SHB unexpectedly fell sharply. Despite substantial net foreign selling, there were no clear signs of broad-based selling pressure, as these transactions appeared to be driven by stock-specific factors.

Technical Outlook: The VN-Index ended the week at 1,735 points (-2.62 points, -0.15%), with weekly trading liquidity edging up. The index continued to trade below its 50-week moving average (MA50) and repeatedly fluctuated around the 1,730-point support level. Strong sector divergence kept the overall market relatively range-bound. Retail was the best-performing sector last week, while technology and household & personal products continued to decline. Foreign investors recorded unexpectedly heavy net selling in several individual stocks. PNJ was the main target of net selling last week, while MCH came under concentrated selling pressure on Friday this week.

Investment Strategy: Prioritize defensive stocks with low beta, strong cash flows, high dividend yields, and low debt levels amid rising interest rates. Insurance, electricity, and water utilities are worth considering. In the short term, the market may face further downside pressure; therefore, short-term traders should prioritize monitoring the market and remain cautious.