The defining event of April was FTSE’s formal confirmation of Vietnam’s upgrade from Frontier to Secondary Emerging Market. The reclassification will be implemented in four tranches, beginning in September 2026 and concluding in September 2027. This milestone, alongside strong Q1 earnings, provided support to the market. The VN-Index rose 10.7%, led by the VINfamily (VIC, VHM, VRE and VPL). PYN Elite +1%.
Most listed companies reported strong Q1, with total net profit growth at 36% YoY. PYN Elite’s core holdings are even stronger with 41% YoY growth, led by HPG, MWG, and KDH, but broad market seems dysfunctional in this sense for the time being, as earnings are not driving stocks.
Macro: Vietnam’s economy continues to show resilience across key sectors. In April, total industrial production grew +9.9% YoY. Total retail sales of goods & services increased +12.1% YoY.
Tourism growth was robust, international arrivals exceeding 2 million (+22.8% YoY). Most notably, arrivals from Europe surged 46.1% YoY, highlighting the success of expanded flight routes.
CPI increased 5.5% YoY due to energy price volatility. Supply risks are being managed with petroleum reserves secured through mid-July. The National Assembly has ratified a public investment plan for 2026 totaling around 33 billion EUR. This represents the largest capital allocation in the nation’s history.
PYN Elite stock of the month: HPG (Hoa Phat Group)
HPG is the dominant steel producer in Southeast Asia and a primary beneficiary of Vietnam’s infrastructure expansion. The company’s full-year guidance targets 35% revenue growth and 42% earnings growth. Based on strong Q1 momentum, we expect HPG to exceed these targets.
HPG is diversifying its production to include specialized railway steel for the North-South high-speed rail project, with the new plant scheduled for 2027 operation. The company will also expand more into real estate. The upcoming masterplan for the Red River Boulevard project in Hanoi provides HPG with a high-value real estate catalyst in a prime location.