HIGHLIGHTED NEWS
The State Bank of Vietnam (SBV) has recently announced the latest developments in interest rates offered by credit institutions to customers. Specifically, the average lending rate ranges from 6.7% to 9.0% per year, with short-term lending rates for priority sectors at approximately 3.9% per year—lower than the regulatory ceiling of 4% per year. The stable and low-interest rate environment has supported economic growth. In Q1/2025, the industrial production sector showed positive signs, with industrial output value (at 2010 constant prices) estimated to increase by 7.2% year-on-year, while the industrial production index rose by 7%. The electricity production and distribution, manufacturing and processing, and mining sectors grew by 10%, 8.2%, and over 6%, respectively.
Research by IFM Research and the General Statistics Office indicates that Vietnamese consumers are spending more on essential goods, education, food and beverages, and healthcare. This trend is reflected in strong retail sales growth across key categories, including cultural and educational products (up 15.9%), food and beverages (up 9.9%), apparel (up 9%), and household appliances and equipment (up 6.8%). In 2025, Vietnam's F&B industry is projected to grow by only 9.6% due to several challenges. One of the biggest obstacles is the limited supply of high-quality retail spaces, while traditional shophouses are losing their appeal, especially to foreign brands.
TRADING STRATEGY
The stock market closed slightly in the green at 1,331.92 points, with improved liquidity. Capital flows remained divergent, rotating from large-cap stocks to mid- and small-cap stocks in sectors such as real estate, chemicals, industrial services, utilities, and basic resources. Selling pressure increased in the financial, technology, and retail sectors. The VN-Index is expected to fluctuate around the 1,332-1,337 point range.
The market continues to experience fluctuations near the 1,340-1,350 resistance zone, with signs of improving capital inflows. Mid- and small-cap stocks are recovering after a period of profit-taking and portfolio rebalancing. Large-cap stocks are alternating between gains and losses to maintain the index’s momentum. Investors are advised to hold positions and selectively increase exposure during market corrections for medium-term strategic stocks. Short-term trading should remain flexible and focus on capital flow dynamics or existing portfolios.
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