TRADING STRATEGY
The Ministry of Finance is proposing to abolish the procedures for investment policy approval and investment licensing, replacing them with a mechanism in which investors register money transfers with the State Bank of Vietnam. Under this proposal, approval procedures under the authority of the National Assembly, the Prime Minister, and the Ministry of Finance would be eliminated. Investors would only need to register with the State Bank after obtaining investment approval documents from the host country (such as an investment license, business establishment certificate, capital contribution agreement, or share purchase contract). From a foreign exchange management perspective, the State Bank would compile statistics, monitor implementation, and assess the impact on the balance of payments and foreign exchange reserves. The banking system would also have tools to handle violations, such as temporarily suspending transfers or freezing investment capital accounts.
TRADING STRATEGY
The stock market closed slightly higher at 1,611 points, with improved liquidity. Market divergence persisted, with capital flows tending to move into mid- and small-cap stocks in the financial services, real estate, technology, construction materials sectors, and a few individual banking stocks. On the other hand, selling pressure intensified in basic resources, retail, oil & gas, and industrial services. Today, the VN-Index is expected to fluctuate within the 1,605–1,620-point range.
The market retested the psychological zone of 1,590–1,600 points. Selling pressure appeared fairly early across a wide range of stocks, but capital inflows once again showed selective stability at a high level. Although the index’s upward momentum has somewhat weakened since funds began shifting from large-caps—especially VN30 stocks—to mid- and small-caps, the VN-Index’s uptrend toward the next resistance zone of 1,630–1,650 points shows no signs of being disrupted. Investors are advised to continue holding their strategic portfolios, consider partially restructuring positions in stocks that have reached profit targets, and reinvest in other fundamentally strong stocks with better growth potential during periods of market volatility.
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