Industry Report

BSC Vietnam Sector Outlook 1Q2023_EN

Date

23/02/2023
Language

Tiếng Việt
Number of Downloads

552

Detailed report

Dear Investors,

Over the years, BSC often provides investment topics, general assessment of possible opportunities, helping investors to have more options throughout the year. The year 2023 is forecasted to face many difficulties with the global economic growth being forecast to slow down. BSC continues to raise issues that will have great influence and lead the market in 2023, including:

The expansionary fiscal policy with the public investment stimulus package will be the supporting factor for the economic recovery and growth plan for the period of 2023-2025.
China's opening will help to promote economic growth to some extent.
Foreign investors supported the market in Q4/2022 and are expected to continue in 2023.
6.8 million domestic individual accounts are the driving force for market development in the next phase, of which 4.1 million new securities accounts were opened during the 2021-2022 period.
Enterprises’ earnings growth faced difficulties due to a high base in 2022, but still maintained a slight positive growth
Market valuation is now at an attractive level, which is not often seen in recent years (P/E FW 2023 = 11.5x), opening up opportunities to accumulate stocks in the long term at a reasonable valuation.

BSC believes that Vietnam's current economic indicators show that we are still in the DECELERATION phase, characterized by most of the signs such as rising inflation, rising deposit rates that remains at a high level, and stock prices still being in the correction phase. Therefore, the move toward the recovery phase will need some additional important factors including (1) The peak of deposit and lending interest rates, (2) The peak of inflation, followed by a decline, and (3) The formation of a sustainable uptrend in stock price.

Following the previous Vietnam Sector Outlook Report, BSC would like to send to investors Vietnam Sector Outlook Q1/2023. In the Quarterly Industry Outlook Report, BSC gave comments to the economic sectors with 7 groups of Positive, 11 groups of Neutral and 3 groups of Negative.

BSC wishes all investors a wise, lucky and successful investment year!