HIGHLIGHTED NEWS
In the National Assembly session held on the afternoon of December 3, the Government proposed to establish a free trade zone in Ho Chi Minh City with a special mechanism on land, tax and finance to turn the city into a regional economic and financial center. Specifically, the policy applied to this area in Ho Chi Minh City includes assigning the authority to establish and expand the free trade zone to the Ho Chi Minh City People's Committee; projects (except commercial housing) in the above area can be allocated or leased land without auction or bidding, in order to promote investment and infrastructure development. In addition, investors in the area also enjoy great incentives such as 10% corporate income tax for 20 years, exempted for the first 4 years and reduced by 50% (to 10%) for the next 9 years; Experts and high-quality workers will receive a 50% reduction in personal income tax for 10 years... In general, at the end of the discussion session, the National Assembly basically agreed with the proposal, however, still requested the Government to clarify the connectivity of the free trade zone with the international financial center and the impacts on the regional economy in order to complete the policy.
TRADING STRATEGY
The stock market increased positively and closed at 1,731 points with liquidity continuing to improve. Cash flow maintained a widespread state across most groups and sectors under the leadership of large-cap stocks in the financial and retail sectors. Selling pressure weakened and appeared in some individual stocks in the real estate, technology, and oil and gas sectors. The VN-Index today is likely to fluctuate around the 1,720-1,740 point area.
The market is still maintaining a positive state in terms of scores. The reduction in selling pressure, the slight spread of cash flow under the leadership of leading stocks and the return of foreign net buying has made the general sentiment gradually show signs of improvement. If this state continues to be maintained, the VN-Index will likely not have much difficulty breaking out of the 1,720-1,740 point area to head towards the 1,780-1,800 point area. Investors can consider screening, restructuring short-term portfolios towards controlled concentration or trading with available goods to optimize short-term positions. On the other hand, buying activities for medium- and long-term vision can absolutely continue to take place in the group of basic stocks, with attractive valuations or breakthrough prospects in the late 2025 and the first half of 2026.
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