HIGHLIGHTED NEWS
In the first two months of 2025, Vietnam's economy recorded strong growth in foreign direct investment (FDI), along with a noticeable shift in the structure and drivers of FDI attraction. Specifically, newly registered FDI reached $2.19 billion with 516 newly licensed projects. The number of new projects increased by 10% year-on-year; however, the total registered capital for these projects dropped significantly by 48.4%. Conversely, additional investment through capital adjustments reached $4.18 billion—7.4 times higher than the same period last year—with 256 projects registering capital adjustments. Additionally, the value of capital contributions and share purchases by foreign investors amounted to nearly $529.8 million across 553 transactions, reflecting an increase of 88.8%. The sharp contrast between the decline in newly registered capital and the substantial growth in adjusted capital suggests a potential strategic shift among foreign investors. Key sectors attracting significant foreign capital include manufacturing and processing, the semiconductor and electronics industries, high-tech sectors, and professional, scientific, and technical activities. This increased investment in these areas may signal a gradual shift toward higher value-added industries, aligning with Vietnam’s technological development goals.
TRADING STRATEGY
The stock market rebounded positively, closing at 1,330 points with improved liquidity. Sectoral divergence persisted, with large-cap stocks leading in finance, real estate, basic materials, technology, and tourism & entertainment attracting capital inflows and supporting the index. On the other hand, selling pressure increased on mid- and small-cap stocks in basic materials, oil & gas, chemicals, retail, and consumer goods. The VN-Index is expected to fluctuate around 1,330-1,335 points today.
Although the market has recovered after four consecutive losing sessions, it remains heavily reliant on support from VN30 blue-chip stocks. Investor sentiment remains cautious, with profit-taking and portfolio rebalancing pressure still prevalent in mid- and small-cap groups. The VN-Index is likely to continue fluctuating narrowly near the 1,340-1,350 resistance zone in the coming sessions before supply-demand dynamics stabilize and the index enters a more sustainable recovery phase. Investors are encouraged to hold positions and seize opportunities to increase stock allocation for medium-term strategies during market corrections. Meanwhile, short-term trading should prioritize a focused and flexible approach aligned with capital flow movements.
