HIGHLIGHTED NEWS
The Ministry of Industry and Trade has recently announced the 2024 FTA Index, a set of indicators evaluating the implementation of free trade agreements (FTAs) by localities across Vietnam. To date, Vietnam has negotiated, signed, and implemented 17 FTAs with over 60 partners across various continents. According to the survey results, the average score of the 63 provinces and cities in the 2024 FTA Index is 26.20 points, with the lowest-scoring province achieving only 14.49 points. Specifically, Ca Mau, Thanh Hoa, and Binh Duong are the top-performing localities in the country. The evaluation of FTA implementation through this index serves not only as a benchmarking tool but also as a motivation for local authorities and the business community to effectively implement and optimize opportunities from FTAs. This contributes to diversifying markets, supply chains, and export products. However, in practice, the implementation and utilization of FTAs remain uneven across regions. Therefore, stronger measures from regulatory bodies are needed to further enhance the benefits derived from FTAs.
According to the market classification report from FTSE Russell, Vietnam remains on the watchlist for an upgrade from frontier market to secondary emerging market status. Vietnam has yet to meet two key criteria: the settlement cycle and the costs associated with failed trades. Both criteria are currently rated as "restricted." Nevertheless, FTSE Russell acknowledges the ongoing efforts and commitments of Vietnamese regulatory agencies to promote legal reforms and create more favorable conditions for international investors to access Vietnam’s stock market. FTSE Russell is expected to update Vietnam’s status in the Watch List during its annual Country Classification Review in September 2025.
TRADING STRATEGY
The stock market continued its decline, retreating to the 1,094-point level despite improved liquidity. Selling pressure remained intense, particularly among mid- and small-cap stocks in sectors directly affected by international trade issues. On the other hand, some support has begun to emerge for a few large-cap stocks within the VN30 basket. Today, the VN-Index is likely to continue fluctuating within a wide range, with the goal of closing above the 1,100-point mark.
The market continues to face challenges due to limited progress or ongoing negotiations in trade talks between the U.S. and various countries/territories. However, a positive development has emerged as foreign investors have returned to net buying after a prolonged period of strong net selling. Additionally, economic growth forecasts and the earnings outlook of listed companies suggest that many stocks are currently trading at relatively attractive prices compared to their fundamental valuations. The VN-Index's P/E ratio has also approached its lowest level in recent years, raising the possibility of a rebound in the next few trading sessions. In the meantime, investors should continue to focus on portfolio management while staying informed through official domestic and international news sources, in order to identify potential opportunities when the market shows signs of a reversal.
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