The Rise of the New Market: Are Domestic Stocks Leading the Charge?

Masan Group (HOSE: MSN) is poised to attract foreign investment with its leading position in the consumer and retail sector, as well as a strong financial foundation.

Asia attracts nearly $10 billion in capital inflows – Vietnam is a bright spot

According to Bloomberg data, global investment funds have purchased $9.64 billion worth of equities in emerging Asian markets (excluding China) over the last three weeks, marking the longest streak of inflows since March 2024. Notably, corporate profits in these markets are expected to be less affected by Trump’s tariff policies. HSBC estimates suggest that current tax rates could reduce emerging market profits by about 7%, significantly lower than the 10-15% impact on US businesses.

Additionally, shortly after the US announced new tariffs in early April 2025, major investment firms such as Goldman Sachs, Morgan Stanley, and Fidelity International simultaneously upgraded their recommendations for Asian consumer staples stocks to “overweight.” Bloomberg quotes experts as saying that the MSCI Asia Pacific Consumer Staples Index rose 5% in just two weeks, far outpacing the 2.5% decline in the regional benchmark. Businesses focused on domestic markets and essential products are demonstrating their defensive prowess amid the global crisis.

This shift indicates a rotation of capital from growth stocks, such as technology, to defensive sectors as concerns about a slowdown in global growth due to the US-China trade war mount. Many Asian governments are also implementing consumer stimulus packages.

In this context, Vietnam has emerged as a bright spot, attracting foreign capital inflows.

According to the Foreign Investment Agency (Ministry of Finance), as of April 30, 2025, the total registered foreign investment capital into Vietnam reached $13.82 billion, up 39.9% over the same period last year. Of this, the manufacturing and processing industry continued to be the magnet for new registered capital with $3.39 billion (accounting for 60.6%), followed by real estate business with $1.51 billion (accounting for 26.9%).

Vietnam’s stock market has also witnessed strong inflows from foreign investors. After nearly two years of relentless selling, with a net value of VND 125,000 billion, foreign investors officially returned to a net buying trend in the Vietnamese stock market, marked by a record buying session of VND 2,400 billion on May 14th.

Consumer recovery boosts growth for consumer and retail stocks

With the government’s GDP growth target of over 8% for 2025, corresponding to a per capita GDP of over VND 5,000 trillion, the consumer market is expected to recover this year, providing fertile ground for consumer and retail stocks. As the industry leader, Masan Group (Stock Code: MSN) is expected not only to reap positive results but also to attract investment into its stock.

The positive figures in the consumer market also reflect the resilience of the Vietnamese economy amid the tariff storm. Specifically, according to the General Statistics Office, the total retail sales of goods and revenue from accommodation and catering services in the first five months of 2024 were estimated at VND 2,580.2 trillion, up 8.7% over the same period last year. Revenue from accommodation and catering services increased by 15.1%, while tourism revenue surged by 45.1%.

Along with this, the strong recovery of domestic and international tourism after the COVID-19 pandemic has had a direct impact on consumer behavior. For instance, in 2024, Vietnam welcomed approximately 17.5 million international visitors and 110 million domestic tourists, with total tourism revenue estimated at VND 840 trillion.

Amid the positive consumer market outlook and the shift in investment flows, Masan Group’s MSN stock is expected to benefit from capital inflows and deliver positive business results this year.

MSN Stock – Attractive valuation, possessing multiple criteria for attracting foreign capital

Recently, Bao Viet Securities Company (BVSC) provided an optimistic assessment of Masan Group’s business prospects for 2025. Using the Sum-of-the-Parts (SoTP) valuation method, BVSC set a target price of VND 89,200 per share for MSN stock.

In addition to impressive business results, MSN possesses several attractive factors for foreign capital: FOL (foreign ownership limit) has ample room for new capital; high liquidity, with large market capitalization and active trading volume; healthy debt-to-EBITDA ratio of 2.9x, reflecting a robust balance sheet; and an 81% increase in free cash flow (FCF) compared to the previous year, reaching VND 743 billion, indicating a strong ability to generate real cash flow amid investment cuts by many businesses.

With global capital flowing into Asia and Vietnam emerging as a bright spot, MSN possesses the right combination to become a focal stock for foreign investment: evident growth potential, attractive valuation, industry leadership, and further upside potential. For mid to long-term investors, this is a strategic time to accumulate MSN, anticipating the wave of market upgrades and global capital flows.