Macro/ Strategy

Despite facing uncertainty, Vietnam achieved impressive GDP growth of 8.02% in 2022, highest level in 12 years. In contrast, the stock market plunged 33% in 2022, which is the worst performance since global financial crisis in 2008. This reflects the investors’ concern on higher risk of global recession and slowing growth of Vietnam economy in 2022Q4.

In 2023, the stock market is expected to be stable, VNIndex balances around 1,000-1,100 points, corresponding to P/E 9x-11x and forecasted earnings growth of listed companies at 5%. The interested investment themes during this period may be high dividend yield stocks, defensive sectors and especially, beneficiaries of robust public investment when this is defined as key driver for Vietnam economic growth in 2023. And, if the market have chance to enter a new uptrend cycle, banking sector is expected to lead this recovery.