(EN) GTJASVN Research_August Investment Strategy_WHICH CASH FLOW IS DRIVING THE MARKET TO NEW HIGHS_06.08.2025

INVESTMENT STRATEGY

The stock market in recent months has significantly benefited from increased cash flow into the market, driven by the broader economic stimulus policies of the Government.

In the medium term, efforts to activate and amplify large-scale cash flows are key drivers supporting the stock market, alongside the prospect of a market upgrade. In the short term, we believe the stock market continues to be supported by several catalysts, including foreign cash flow (driven by the market upgrade) and domestic investor cash flow (with high levels of investor deposits held at securities companies’ accounts).

However, liquidity and cash flow are highly sensitive to macroeconomic variables, particularly external factors (such as tariffs and Fed interest rates), making them more reactive. Consequently, market corrections are inevitable when one of the primary cash flows participating in the market is impacted (e.g., margin lending or withdrawals of investor funds to focus on business activities). 

Stock Selection: 

• Growth Stocks: Focus on themes aligned with national development strategies, such as public investment, banking, and real estate. Stocks expected to benefit from the market upgrade prospect include VCB, HPG, VHM, and VCI.
• Defensive Stocks: A portfolio of stocks offering high dividend yields.