BSC_Vietnam Sector Review_Q32019_EN

Despite the active performance during Q1, Vietnam stock market performed relatively stagnant during Q2 regarding movements and liquidity. Due to complicated worldwide situation, Q2’s business performance unimproved and the fragmented cash flow were factors affecting the market. Entering the third quarter of 2019, Vietnam stocks are expected to show complicated movements depending the events regarding: (1) Global economy prospects, (2) Actions of Central Banks from influential countries, (3) US-China trade war and geopolitical tension and (4) Business performance of 6M2019 being published would provide investors with more information of the performance of the late half 2019. (We expect there would be business performance reports of Q3/2019 for investors). Prospects for many industries in the next 1-2 years have big differences due to the macro factors on the global scale in general and the orientation of macroeconomic policies in particular. This will make the stock market continue to diverge strongly. We update the investment topics mentioned in the 2019 industry
outlook report including:

First, the story of upgrade to Emerging market is dilatory and difficult to happen within 2019

Secondly, the change in order of VN30 basket and forecast will have a big impact on Vn-Index in 2019

Thirdly, listing / equitization and exchange transfer plans are expected to accelerate due to the sluggish progress in 2018

Fourth, the opportunities from divesting State capital from leading enterprises

Fifth, bank stocks expected to be the center of attention during the latter half of 2019 with their current attractive valuation

Sixth, defensive and high-income stocks (electricity) and sectors with stable growth potential (retail, consumer, drinks) outperformed VN-Index

Seventh, public investment is also one of the government's key plans to be promoted in 2019