Unlocking Investment Opportunities in the Stock Market

Numerous Investment Opportunities in the Stock Market

In their newly released strategic report, Agriseco Research asserts that economic growth figures continue to show positive trends, with each quarter outperforming the last. This sets the foundation for expectations of improved business performance on the stock exchange in Q2 2024, paving the way for further growth in subsequent quarters and presenting numerous investment opportunities in the stock market.

Firstly, the interest rate environment remains low compared to the 2023 average, which will help reduce financial costs for businesses. Additionally, credit growth accelerated in the latter part of Q2, and the targeted credit growth of 15% for 2024 (higher than the 2023 target of 14%) will facilitate the expansion of businesses in terms of scale and operating revenue.

At the same time, investment opportunities are opening up as several key industrial products, including steel, rubber, wood, textiles, and chemicals, have seen significant production increases in the first half of the year. This is expected to result in high business performance growth in the second half of 2024, especially compared to the low base in the same period last year.

Next, FDI into Vietnam is growing well amid the trend of supply chain restructuring, providing an important boost to economic growth in 2024. Major technology groups are promoting investment cooperation in semiconductors, chips, and renewable energy. This is anticipated to benefit Technology, Telecommunications, and Industrial Real Estate businesses. Simultaneously, the Industrial Park group also stands to gain indirectly from ongoing public investment projects related to infrastructure and transportation.

Furthermore, international trade activities continue to recover robustly, with total import and export turnover increasing by 16% compared to the same period last year. As a result, the analysis team expects strong business performance from export-oriented industries such as chemicals, textiles, seafood, and rubber. Additionally, related sectors such as logistics and seaports are also poised to benefit from this trend.

The number of international tourists has maintained its upward trajectory since January 2020, surpassing pre-pandemic levels thanks to the government’s tourism stimulus solutions. This could bode well for the business performance and stock price movements of companies in the aviation and services sectors.

According to Agriserco, several policies, documents, and decrees are expected to support the market and businesses in the second half of the year. These include laws related to land, housing, and real estate business; a 30% increase in the basic salary; a reduction in the VAT rate to 8%; policies to reduce taxes and fees to support production and business activities; the Law on Credit Institutions; Power Planning 8; and policies on the direct purchase and sale of renewable energy.

The new policies that will come into effect in the latter part of the year are anticipated to boost economic demand and revive the real estate market, thereby creating a positive psychological impact on the overall market.

The Market May Continue to Face Selling Pressure from Foreign Investors

In parallel, Agriseco also highlights some risks stemming from the complex international macroeconomic landscape: the Fed maintains high-interest rates, intense strategic competition among major powers, supply chain safety risks, and less-than-optimistic growth prospects for major economies.

Additionally, exchange rates remain a notable risk, having already increased by 4.3% since the beginning of the year due to the persistent interest rate differential between the US dollar and the VND. The market may continue to face selling pressure from foreign investors in the coming period, following their net sell-off of over $3 billion in the past year. These factors will continue to negatively impact the global economy in general and the stock market in particular.