PYN Elite rose 5.4% in May, led by HVN, GEX, and brokers. The VN Index gained 8.7%, with 40% of the increase from Vingroup and Vinhomes, fueled by strong retail investor enthusiasm following high-speed rail news and favorable government policies. Market sentiment improved as Vietnam held its second trade talk with the U.S. in May and began a third in June. The government issued Resolution 154, targeting over 8% GDP growth in 2025 and 8.2% for 2Q (1Q: 6.9%). The resolution supports infrastructure spending, signals a potential rise in government debt-to-GDP, and aims to boost the private sector. Regulatory approvals are accelerating, especially in the renewables and real estate sectors.
Macro: The most notable highlight in May was public investment, with disbursement reaching USD2.7bn, twice the five-year average – bringing total disbursement to USD7.7bn in 5M 2025 (+38.8% YoY). This is in line with the government’s strong will for infrastructure development and emphasis on fast-tracking approvals. The broader economy showed resilience: Retail sales stayed solid at +10.2% YoY in May (+9.7% in 5M 2025), while IIP accelerated to +9.4% YoY (+8.8% in 5M). FDI momentum strengthened, with cumulative registered FDI hitting USD18.4bn (+51.1% YoY in 5M). Exports rose +17.0% YoY in May, partly driven by front-loading activity.
PYN Elite Stock of the month: MBB (MB Bank)
MBB began the year out of favor due to asset quality concerns and limited investor communication. In 1Q, revenue grew +30% YoY and net profit +49% YoY, with only a slight uptick in NPLs. Despite strong results, the stock saw little reaction as investors await clearer signs of asset quality improvement. In May, Novaland – one of MBB’s key clients – received approval to resolve issues at Aqua City and plans to resume sales in 3Q. Meanwhile, the government raised retail electricity prices and issued Power Development Plan 8 to help advance the power sector. These developments improve MBB’s renewable loan portfolio, which faced legal bottlenecks and delayed payments. We accumulated more MBB and raised its portfolio weighting from 9.5% to 12.5%.