HIGHLIGHTED NEWS
The draft amended Law on Credit Institutions, expected to be passed by the National Assembly this week, is anticipated to be a breakthrough that will help the banking sector address over VND 1 quadrillion (approx. USD 39 billion) in bad debt. A key highlight of the draft is the legalization of the right to seize collateral assets, while removing the condition that such assets must be free of disputes—a clause that many borrowers had previously exploited to delay their repayment obligations. National Assembly delegates have assessed that the new regulation will tighten credit discipline, compel borrowers to take greater financial responsibility, and help release “frozen capital” that has been placing pressure on the entire banking system and the economy. The Governor of the State Bank of Vietnam emphasized that the asset seizure process must follow transparent, fair procedures and respect the rights of all parties involved. Banks believe that the right to seize assets is not a coercive tool but rather a psychological lever to encourage borrowers to cooperate in debt repayment—thereby protecting capital mobilized from the public and ensuring the safety of the financial system. If approved, the draft law will take effect on August 1, 2025.
TRADING STRATEGY
The stock market rebounded strongly and closed at 1,338 points, with liquidity declining to a level roughly equal to the weekly average of the previous trading week. Selling pressure eased, and capital flows spread across sectors, led by oil & gas, chemicals, finance, and industrials. The VN-Index is expected to fluctuate today within the 1,335–1,345-point range.
The market reversed and gained after receiving positive news from Vietnam–U.S. trade negotiations. Foreign investors were strong net buyers. Select stocks in sectors less affected by international geopolitical tensions continued to attract capital and stood out as market bright spots. This is a trading week marked by two key events: the expiration of June’s derivatives contracts and the completion of Q2 ETF portfolio restructuring. As a result, if the VN-Index fails to maintain the current level of consensus and sector divergence returns in upcoming sessions, the index is likely to fluctuate within a range rather than forming a clear short-term uptrend toward the resistance zone of 1,370–1,380 points. Investors may consider holding positions and selectively making partial allocations at support levels, with a focus on fundamentally strong stocks that have growth potential or are less sensitive to global political factors.
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