The Vietnamese stock market witnessed its fourth consecutive week of gains, approaching the highest price level since March 2025. The VN-Index ended the week 1.38% higher than the previous week, reaching 1,332.6 points, the highest level in the past three years.
While the VN-Index successfully conquered this significant milestone, foreign investor transactions were a downside during the past week, with strong net selling. Overall, after five sessions, foreign investors net sold VND 2,917 billion on the entire market.
2 sectors expected to attract cash flow attention
Mr.
Ngo Minh Duc, Founder of LCTV Financial Investment Joint Stock Company
According to Mr. Duc’s observations, after hitting a bottom at the 1,070 mark in early April, the market has risen 270 points to 1,340 points in late May. In the recent sessions, the market faced profit-taking pressure at the 1,340-1,350 range.
Mr. Duc predicts that the stock market is currently in the second phase of the year, which is stabilization, followed by gradual acceleration towards the end of the year, aiming for an upgrade. Phase 1 lasted from January 2025 to mid-March 2025, a period when the market rose in a final arch due to monetary injection and investment stimulation. Phase 2, from the end of March to June, is the ‘black swan’ phase due to changes in US tax policies. However, after the conclusion of the July negotiations, the market will enter a stable phase and gradually accelerate towards 1,520 points in the first quarter of 2026.
Mr. Duc forecasts that the market will have about 8-10 sessions in early June to accumulate sideways around the 1,320-point threshold (+/- 10) due to information gaps and the market also awaiting more positive signals from the third round of Vietnam-US trade negotiations.
Additionally, Resolution 68 can be considered a breakthrough in policies towards the private sector. For the first time, the private sector is regarded as the most important driving force of the economy, eliminating prejudices against private enterprises; ensuring full property ownership, freedom of business, and equal competition.
At the same time, the government is also carrying out institutional reforms such as merging provinces and promoting public investment, especially in infrastructure and technology, in an increasingly vigorous and resolute manner. This will boost the economy to achieve breakthrough growth, targeting a GDP growth rate of over 10%, instead of maintaining the current average of 6%-7%.
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The stock market is a market of the future and faith. Once the mechanism is untied, entrepreneurs and investors will have their faith strengthened to develop their businesses and participate in the global value chain
“, said the LCTV expert.
Regarding public investment, the large public investment package in 2025 will boost economic growth through infrastructure development, job creation, demand stimulation, and private investment attraction. In 2025, the total approved public investment capital reached VND 875 trillion, an increase of 37.7% compared to the public investment disbursed in 2024.
The expert evaluates that promoting public investment disbursement is an important driving force for many enterprises to continue their development amid complex global fluctuations. Large projects such as the North-South high-speed railway have attracted the attention and participation of numerous domestic enterprises, providing a significant opportunity for the private sector to thrive in the next phase.
Moreover, with the strength of private enterprises and the stock market being one of the major capital mobilization channels, it is expected that many large private enterprises will take advantage of this opportunity to list their companies on the stock exchange. This will provide additional room for the development of Vietnam’s stock market in the next phase.
Currently, the valuation of banks, oil and gas, steel, and real estate sectors is relatively low, and many industries are still 8-15% away from the price range of March 2025. Therefore, if the VinGroup stocks undergo a correction, the market still has other supports such as banks (VCB, BID), consumer goods (MSN), oil and gas (GAS), etc. The market has ample room for growth, especially when Vietnam is likely to be upgraded from a frontier market to an emerging market by the end of the year, attracting more international capital inflows.
Furthermore, the first-quarter financial reports revealed significant growth for many enterprises, particularly in real estate, banking, and manufacturing industries. The banking sector achieved positive business results in the first quarter of 2025, with approximately 15% growth. This growth stems from accelerated credit and supportive policies from the government.
Banks are experiencing healthy growth, with many banks even outpacing the growth rates of US tech companies, yet their current valuations are too low, with many banks having P/B ratios of just 1-1.5, such as MBB, SHB, and TCB.
Along with this, the real estate sector is also at a reasonable level after a sharp decline in early April 2025, and the promotion of public investment disbursement is a driving force for real estate project prices. The total public investment plan for 2025 is VND 956,892 billion. The estimated disbursement from the beginning of the year to May 31, 2025, is VND 209,670 billion, reaching 21.9% of the total plan.
These two sectors are expected to attract cash flow attention in the coming period. Investors can look for short-term buying opportunities at the 1,300-point threshold.
Short-term profit-taking pressure mounts
Mr. Dinh Viet Bach, Pinetree Securities’ Analyst
The VN-Index concluded its fourth consecutive week of gains. However, strong profit-taking pressure emerged as the market approached the old peak of around 1,340 points. The market’s focus last week was on international developments, especially those related to the United States and President Donald Trump.
These factors boosted investor sentiment in the first session, as evidenced by the surge of numerous export-related stocks, including textiles, seafood, and industrial zone companies. Meanwhile, money continued to flow into Vingroup’s stocks and real estate companies, along with some individual stocks with specific supportive stories.
However, it is noteworthy that in the last three sessions, the VN-Index repeatedly attempted to test the 1,340-point threshold but failed, leaving behind signs of four distribution sessions – a technically unfavorable signal.
Entering the new trading week – the first week of June, Pinetree’s expert believes that investors tend to await the results of the third round of tax negotiations between Vietnam and the US, which may lead to a subdued market trend. Short-term profit-taking pressure is evident in stocks that have risen sharply in the past, such as the GEX group, as well as large-cap sectors like banking and retail, potentially causing the VN-Index to face mild corrections at the beginning of the week.
If, in the coming week, the index breaks below the MA(10) threshold of 1,325 points, the market is likely to face a deeper correction. Conversely, if the index holds steady and successfully accumulates above the MA(10), the market still has the opportunity to form a new price base before resuming its upward trend.
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The VN-Index’s fourth consecutive weekly gain couldn’t mask underlying weakness as profit-taking pressures emerged last week. The gains were largely driven by the first two sessions, after which stocks turned south amid robust selling pressure, with the VN-Index failing to breach the 1,340-point peak.
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