HIGHLIGHTED NEWS
As part of the session, the National Assembly voted to pass a legislative package referred to as “one law amending eight laws,” which includes amendments and supplements to several provisions of the following laws: the Law on Bidding; the Law on Investment under the Public-Private Partnership (PPP) model; the Law on Customs; the Law on Export and Import Duties; the Law on Investment; the Law on Public Investment; and the Law on the Management and Use of Public Assets. In the report on feedback, explanation, and revision of the draft law, Minister of Finance Nguyễn Văn Thắng stated that the Government had taken into account recommendations regarding granting state-owned enterprises the authority to independently make decisions on procurement and bidding activities. Accordingly, the draft Law on Bidding was revised to clarify that all entities (including state-owned enterprises) using state budget funds for contractor selection must comply with the provisions of the Law on Bidding. The draft PPP Law also includes regulations to address revenue shortfalls in BOT (Build-Operate-Transfer) projects in the road transport sector signed before January 1, 2021. Specifically, it adds provisions to the PPP Law on mechanisms for handling revenue reduction risks for BOT projects with contracts signed prior to the law’s effective date. According to government statistics, 11 BOT transportation projects have experienced revenue declines. In response, the Government has directed the Ministry of Construction to negotiate with investors and lenders to reduce loan interest rates and profits.
TRADING STRATEGY
The stock market moved sideways within a narrow range and closed slightly lower, just below the reference level of 1,366 points, with liquidity decreasing compared to the previous session. Market divergence returned, with downward pressure seen in leading stocks from the oil & gas, utilities, and industrial services sectors. On the other hand, sectors that helped support the overall index included F&B, basic resources, chemicals, construction, and building materials. The VN-Index is expected to fluctuate around the 1,365–1,375-point range today.
The market remains in a recovery phase, aiming to break through the resistance zone of 1,370–1,380 points. However, this recovery could be somewhat affected by NAV closing activities and Q2/2025 portfolio rebalancing by funds and institutional investors. This may also be a base-building phase for many potential stocks ahead of the Q2 earnings season and Q3/2025 outlook forecasts. Investors are advised to continue holding core strategic portfolios, look to accumulate on dips during the upward trend, and prioritize companies with projected earnings growth in Q2 and Q3/2025.
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