HIGHLIGHTS
As reported by the Insurance Management and Supervision Department (Ministry of Finance), Vietnam's insurance market reached 85 companies by the end of 2024. Total assets were estimated at over VND 1 quadrillion, marking a 10.88% year-on-year increase. Equity capital rose 6.45% to VND 210,124 billion. Insurance premium revenue was estimated at VND 227,495 billion, a slight decrease of 0.26% compared to the previous year, while insurance payouts surged 17.94% to VND 93,906 billion. Reinvestment into the economy totaled VND 850,075 billion, up 13.17%. The Prime Minister has approved the Insurance Market Development Strategy through 2030, targeting an annual growth rate of 15% from 2021 to 2025, with the market's size expected to reach 3-3.3% of GDP by 2025.
The State Bank of Vietnam set a credit growth target of 16% for 2025, exceeding the 15% target for 2024, to meet the economy's capital demands. Resolution 62 continues its plan to gradually reduce intervention in credit allocation. As of December 7, 2024, system-wide credit grew by 12.5% year-to-date, with total outstanding loans reaching VND 15.3 quadrillion.
TRADING STRATEGY
The final stock market session of 2024 ended slightly lower, closing at 1,266 points with reduced trading volume compared to the previous session. Cash flow remained selective, primarily directed toward large-cap VN30 stocks and leading shares in industrial services and basic resources. Today, the VN-Index is expected to hover around 1,270-1,275 points.
The market showed mild fluctuations amid a recovery trend, with liquidity staying low as overall sentiment remained cautious. Selling pressure increased slightly among mid-cap and small-cap stocks, while large-cap stocks, especially VN30, continued to attract capital and stabilize the index. The VN-Index is projected to regain positive momentum and target the critical resistance range of 1,290-1,300 points in early 2025, supported by 2024 earnings results and 2025 growth outlooks. Investors are advised to maintain their current positions while selectively increasing exposure to fundamental stocks within strategic portfolios. Monitor short-term cash flow trends closely and avoid over-diversifying investments.
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