HIGHLIGHTED NEWS
The Vietnam Chamber of Commerce and Industry (VCCI) has recently sent an official letter to the Ministry of Finance to provide feedback on the draft Decree amending and supplementing several provisions of Decree 126/2020/NĐ-CP, which details certain aspects of the Law on Tax Administration. VCCI believes that, in addition to the goal of accurate and sufficient tax collection, tax policy should also encourage investment and business activities, support business development, and thereby foster economic growth and a sustainable revenue base. Therefore, VCCI argues that the draft regulation requiring personal income tax to be withheld at the time of dividend distribution in the form of securities is not entirely appropriate. The practice of distributing dividends in the form of shares helps balance the interests of both businesses and shareholders, while also encouraging long-term stock ownership and alignment with the company. VCCI assesses that this policy could undermine long-term investment incentives, as investors would have to pay taxes before actually receiving any profit. At the same time, businesses may lose a valuable tool for mobilizing resources to reinvest in their production and business operations. Hence, VCCI recommends that the drafting agency reconsider the regulation on withholding personal income tax at the time of dividend distribution.
TRADING STRATEGY
The stock market posted a strong rally toward the end of the session, with the VN-Index closing at 1,521 points, though liquidity slightly declined compared to the previous session. Market divergence re-emerged, with capital flowing into banking, oil & gas, chemicals, and select real estate and financial services stocks. On the other hand, selling pressure weighed on sectors such as basic resources, technology, and consumer goods. Today, the VN-Index is likely to fluctuate in the range of 1,515–1,525 points.
As the market approaches the historical resistance zone around 1,530 points, investor sentiment has become more cautious. Profit-taking and portfolio rebalancing have increased, leading to more frequent and more impactful intraday volatility compared to earlier phases. Nonetheless, capital inflows remain relatively stable, and large-cap stocks continue to play a key role in stabilizing the index. Overall, the VN-Index’s upward trend remains intact with no unusual signs. Investors are advised to continue holding their strategic portfolios, prioritize new purchases in fundamentally strong stocks with stable accumulation bases or capital support, and avoid over-diversification or chasing prices during sharp rallies.
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