HIGHLIGHTED NEWS
According to the Ministry of Finance, cumulative state budget revenue in the first five months of 2025 is estimated at 1,139.6 trillion VND, equal to 57.9% of the estimate and up 24.5% compared to the same period in 2024. Cumulative expenditure over five months is estimated at 833.8 trillion VND, equal to 32.7% of the estimate and up 27.7% compared to the same period. The Ministry of Finance stated that the balance of the central budget and local budgets at all levels is ensured. As of May 25, 2025, 167 trillion VND of government bonds had been issued, with an average term of 9.92 years and an average interest rate of 2.9% per year. Answering questions from deputies at the National Assembly session, the Minister of Finance affirmed that the abolition of the fixed tax regime from 2026 is the right policy, a fundamental step to make household business operations more transparent and at the same time create equality in tax obligations between household businesses and enterprises. The Minister stated that the finance sector will continue to review and improve tax policies, and at the same time propose amendments to related laws such as the Law on Tax Administration and the Personal Income Tax Law, aiming towards a transparent and easy-to-implement tax management model. Regarding solutions to mobilize and improve the efficiency of social investment, the Minister of Finance said that the demand for development investment in the coming period is very large, accounting for about 40% of GDP, with annual investment growth of about 17 to 20%, which is a very high increase compared to the current trend where investment only accounts for about 30-33% of GDP. The Minister proposed several key solutions including striving to allocate 60% of the annual budget for development investment, creating breakthrough solutions to attract maximum capital, strongly developing capital mobilization channels from the capital market, and actively resolving difficulties of long-standing projects across the country.
TRADING STRATEGY
The stock market recovered to the 1,352-point level with liquidity slightly decreasing compared to the previous trading session. Selling pressure increased on medium- and small-cap stocks in the chemical, construction, and materials sectors, as well as some leading stocks in the technology and basic resources sectors. On the other hand, leading stocks in the banking, real estate, and chemical sectors played a positive role in supporting the overall index. Today, the VN-Index is likely to fluctuate around the 1,345-1,355 point range.
The market continued to move sideways within a narrow range for the third consecutive session around the previous peak of 1,350 points. Profit-taking and portfolio-weight reduction pressure appeared on medium- and small-cap stocks. Meanwhile, cash flow tended to move towards large-cap VN30 stocks and some individual stocks expected to have a breakthrough in business results in Q2 and Q3 2025. The VN-Index is still maintaining its recovery trend, aiming to conquer the resistance target of 1,370-1,380 points. Investors are advised to continue holding, accumulate on dips, or trade based on their current portfolios, prioritizing fundamental stocks with positive Q2 2025 business outlooks or those supported by market cash flow.
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