"Currently, the fund is only interested in opportunities with the potential to double in one to three years. Even when compared to deposit interest rates of around 9% per year, we believe equities remain more attractive across all timeframes," VinaCapital affirmed.

VinaCapital presented this view as the market still holds several anchoring points. Firstly, market valuations became more attractive after the correction. According to the fund's data, the forward P/E (price-to-earnings) for 2026 for the VN-Index is currently only 11,5 times. Excluding Vingroup stocks, this valuation drops to approximately 9,5 times, a very low range compared to the earnings growth prospects of listed businesses.

Meanwhile, the economy continues to achieve high growth, with investment and credit support policies being strengthened. Furthermore, Vietnam's official upgrade by FTSE Russell to an emerging market in September 2026 will be a significant catalyst, improving investor sentiment and attracting additional capital flows into the market in the coming period.

From a macroeconomic perspective, the economy continues to show many positive signals. The industrial production index (IIP) increased by 11,4% in the first seven months of the year, while the manufacturing and processing sector grew by 12%. The manufacturing purchasing managers' index (PMI) rose from 51,8 to 52,9 points in July, marking the 13th consecutive month of expansion. This indicates improvements in output, new orders, and export orders, while input cost pressures continued to decrease. These figures demonstrate that manufacturing and export activities are maintaining positive growth momentum.

The most significant highlight of the month came from the Q2 business results of listed businesses. According to VinaCapital's statistics, after-tax profits attributable to parent company shareholders of businesses on HoSE increased by 46% year-on-year and approximately 48% in the first six months of the year.

This growth was broad-based, with 11 out of 12 sectors achieving positive profit growth in the first six months of the year. Eight sectors saw increases above 20%, notably materials (72%), consumer discretionary (55%), consumer staples (44%), and insurance (21%). This widespread profit growth, rather than being concentrated in a few businesses, reflects improvements in the real economy and consumer demand.

"Corporate earnings growth remains the most positive factor for the current market, as it is the decisive driver of market trends in the medium and long term," VinaCapital stated.

In a recent report, analysts from VESAF, VinaCapital's largest open-ended equity fund, noted that the stock market experienced a volatile July, with the VN-Index seeing its sharpest decline since the beginning of the year. This correction pressure stemmed from rising interest rates, which reduced the relative appeal of risky assets. Additionally, investigations into some businesses for legal violations negatively impacted investor sentiment, leading to more cautious capital flows and increased selling pressure across the board. The market only began to recover in the final sessions of the month as many stocks fell to attractive valuation levels.

VESAF saw an 8,3% decrease in July. However, the fund stated it capitalized on the correction to buy. Most of its cash reserves were deployed during the month, as many quality businesses had dropped 40-50% from their peaks. Experts described this as a "rare opportunity."

Investors monitor the stock market at a company in TP HCM. *Thanh Tung*

VinaCapital is one of Vietnam's largest investment management companies, with operations spanning domestic fund management, equity investment, and asset management for international investors. The company has over two decades of operating history, maintaining investments across multiple market cycles. Within its open-ended fund system, VESAF is an equity fund with total assets exceeding 2,200 ty dong as of the end of July, focusing on businesses with strong fundamentals, long-term growth potential, or those currently undervalued by the market.

Tat Dat