Experts warn investors to assess valuation levels against the growth potential of these companies for informed decisions.

The domestic stock market has seen an impressive performance of mid- and small-cap stocks, outperforming the market average.

However, experts warn investors to assess valuation levels against the growth potential of these companies for informed decisions.

Post-Lunar New Year, there has been a notable improvement in market liquidity, with funds spreading across various sectors, leading to an overall increase in stock prices.

The VN-Index has risen for five consecutive weeks, surpassing the significant 1,300-point threshold, a level it struggled to breach throughout 2024.

Average trading value since early February has reached approximately 17.5 trillion VND (684.5 million USD) per session, marking a 36% increase compared to January. In the most recent week, liquidity exceeded 20 trillion VND per session.

However, when compared to the same period last year, February’s liquidity was down by 25%, and year-to-date figures show a 28% decrease.

During this period, mid- and small-cap stocks, particularly in sectors like mining, building materials, construction, rubber and chemicals, have experienced significant price increases.

The market surpassing the 1,300-point threshold, driven by mid- and small-cap stocks, is seen as a positive signal, especially amid global market volatility.

In February, the top ten best-performing stocks were dominated by the mining sector (Yen Bai Industry Mineral JSC, Fecon Mining, Becamex) and financial services sector (Icapital Investment JSC, APG Securities, Ocean Group JSC).

The recent surge in mineral stocks can largely be attributed to escalating trade tensions among major economies, said Lam Gia Khang, Head of Market Strategy at VietinBank Securities.

With China tightening export controls on key raw materials, particularly strategic metals and minerals, supply chain disruptions have driven investors toward these stocks.

However, after a strong rally, investors should be cautious. Despite the price surge, profits after tax in this sector have remained low in recent years, making valuations less attractive and raising the risk of short-term corrections.

Meanwhile, some non-life insurance stocks have been gaining momentum, partly due to a recovery in insurance demand after the crisis of confidence at the end of 2022.

Vietnam’s insurance market still has substantial growth potential. By the end of 2024, the insurance penetration rate (measured by premiums as a percentage of GDP) is expected to range from 2.3% to 2.8%, which is still lower than the ASEAN average of 3.35%, Asia’s 5.37% and the global average of 6.3%.

However, with many insurance stocks rising sharply and even reaching new highs, there is a risk of a market correction, especially as companies face pressure to cover claims from Typhoon Yagi, which struck in early September 2024.

Cautious approach

The stock market is expected to see strong divergence in 2025, creating opportunities for portfolio restructuring and new investments.

According to Khang, investors should focus on mid- and small-cap stocks in sectors benefiting from Government and Central bank policies aimed at achieving at least 8% GDP growth, such as civil construction, infrastructure and public investment.

Stocks like Tradico, which maintained over 110 billion VND in annual net profit (2022–2024) despite industry-wide losses, and PV Coating, which is set to gain from the Block B – O Mon project, are worth considering, he added.

The project could generate over 3.14 billion VND in revenue and 471 billion VND in profit after tax, a significant jump from previous years.

However, Le Duc Khanh, Head of Research at VPS Securities, notes that the recent rally in mid- and small-cap stocks is largely a recovery after prior declines.

For sustained market growth, blue-chip stocks must regain momentum. He expects capital to shift back to these larger stocks.

Bui Van Huy, Head of Investment Research at FIDT, agrees, arguing that large-cap stocks with stable price consolidation offer a more reasonable investment strategy than overheated smaller stocks.

The 2025 market will revolve around economic growth, public investment and market upgrades. Sectors with strong potential include banking, construction, building materials, retail and consumer goods.

Huy expects clearer opportunities in late 2025, as neither global nor Vietnamese markets have undergone significant corrections despite macroeconomic uncertainties. Recommended long-term picks include banking, steel and construction, attractive options if prices adjust, he said./.VNA

Vietnam’s draft Personal Data Protection Law aims to prohibit social media platforms from requiring ID card photos for account verification, enhancing user privacy and data security.

Social media providers may be prohibited from requiring users to upload ID card photos for account verification. (Illustrative photo)

The Ministry of Public Security has introduced a draft Personal Data Protection Law, which includes significant measures to enhance user privacy.

Notably, Article 31 of the draft law specifies that social media platforms and online communication services (OTT) must safeguard the personal data of Vietnamese citizens when operating in Vietnam or offering their services through mobile app stores targeting the Vietnamese market.

New restrictions on ID verification and data collection

According to the proposal, social media providers will be required to clearly inform users about the personal data they collect when users install and use their services.

These platforms must not collect unauthorized data beyond what is explicitly agreed upon with customers.

A key provision in the draft law states that organizations and individuals providing social media and online communication services will not be allowed to request users to upload photos of their national ID card or passport as a method of account verification.

Additionally, social media platforms must provide users with the option to decline cookie tracking and data sharing. They will be required to offer a “Do Not Track” feature, ensuring that user activity on social media and OTT services is only monitored with explicit consent.

Providers must also issue clear, written notifications regarding the sharing of personal data and implement security measures when using customer data for advertising and marketing purposes.

Protecting user privacy and preventing unauthorized surveillance

The draft law explicitly states that “eavesdropping, unauthorized recording of calls, or reading text messages without the data owner’s consent constitutes a legal violation.”

It further clarifies that personal data used to register social media and OTT service accounts is not considered public information and cannot be processed without user consent.

According to the Ministry of Public Security, personal data protection involves multiple layers, including public awareness, regulatory enforcement, and preventive measures to detect and address violations of data privacy laws.

The introduction of the Personal Data Protection Law aims to enhance Vietnam’s legal framework for safeguarding personal information. It seeks to establish clear regulations, align local data protection standards with international best practices, and promote lawful use of personal data for economic and social development.

The draft law is scheduled to be presented for discussion at the National Assembly’s ninth session and is expected to be passed by the end of the year.

Dinh Hieu

In the context of Japan’s ambition to revive its semiconductor industry, Vietnam’s workforce is seen as a solution to the island country’s thirst for human resources.

At a factory in Japan (photo: YKC)

Japan’s semiconductor industry once thrived from the 1970s to the 1990s.

The production value of semiconductors on Kyushu Island alone, dubbed Japan’s “Silicon Island”, once reached a record high of 1,392.4 billion Yen in 2000.

However, the rise of South Korean manufacturers and cyclical market fluctuations caused the Japanese industry to decline steeply.

Against this backdrop, the Japanese government has launched a strategy to revive the semiconductor industry, aiming to boost total domestic semiconductor revenue from 5,000 billion Yen in 2020 to 15,000 billion Yen by 2030.

This strategy is divided into three phases. In the first phase, Japan will secure an advanced semiconductor manufacturing base to serve AI (artificial intelligence) and IoT (Internet of Things) domestically.

In the second phase, Japan will strengthen ties with the US to research next-generation semiconductor technologies. In the third phase, the country will realize and apply future technologies through global cooperation.

In reality, during the first three years of the strategy, starting in 2021, Japan allocated a budget of up to 4,000 billion Yen to support the development of its semiconductor industry.

These investments have begun showing early positive signs as Japan’s semiconductor industry regains its growth.

The production value of semiconductors on Kyushu Island alone reached 1,153.4 billion Yen in 2023, surpassing the 1,000 billion Yen mark for the first time after 16 years.

It is projected that from 2024 to 2030, the Japanese government’s budget for semiconductor industry development will continue to rise, reaching 10,000 billion Yen.

The thirst for workers 

According to Ataguchi, a representative of the Kyushu Bureau of Economy, Trade, and Industry (under Japan’s Ministry of Economy, Trade, and Industry), with government support, there is currently a wave of investment in the semiconductor industry in Kyushu.

Surveys indicate that in the next 10 years, Japan’s semiconductor hub will attract equipment-related investments worth up to 6,200 billion Yen.

However, the semiconductor industry’s appeal to Japanese students remains low, compounded by the lack of industry information and practical training facilities.

As a result, Japan’s “Silicon Island” is forecast to face a severe shortage of semiconductor talents in the future.

Japan’s Ministry of Economy, Trade, and Industry predicts that from now until 2032, the semiconductor industry in Kyushu alone will lack approximately 1,000 workers annually in both short and medium terms.

The roles facing increasing shortages include machine operators and production engineers, as well as research and development (R&D) staff.

Amid the demand to grow the semiconductor sector, many Japanese companies, organizations, and educational institutions are working to diversify the industry’s workforce.

This is why many Japanese business delegations have visited Vietnam to explore and assess its semiconductor workforce, seeking collaboration opportunities.

Ataguchi stated that Japanese semiconductor companies need workers with a strong knowledge foundation in the fields of electricity, electronics, information technology, machinery, chemistry, materials, finance, and business.

For those in R&D positions, they need to have programming skills, knowledge of material engineering, and other practical skills and experience.

According to Ishikawa Isamu, Japan’s Deputy Ambassador to Vietnam, the semiconductor industry in the Kyushu region is entering a phase of robust growth. This area accounts for over half of Japan’s total integrated circuit production value.

He believes that collaboration in training human resources between Vietnam and Japan would benefit both sides, as Vietnam boasts a high-quality technical workforce, while Japan has a strongly developed semiconductor industry.

In recent years, Vietnam has collaborated with Japan to develop the semiconductor industry ecosystem and enhance enterprise capabilities through partnerships with Japan’s METI, the Japanese Embassy in Vietnam, and the Japan External Trade Organization (JETRO).

Regarding human resources, the National Innovation Center (NIC) has worked with Hiroshima University to identify and send Vietnamese talents to Japan for training in international bachelor’s programs in semiconductors. Collaborations with Japan have been implemented effectively, with substance, and have delivered significant value. In reality, quite a few Vietnamese engineers are currently participating in semiconductor production lines at factories in Japan.

Vu Quoc Huy, Director of the National Innovation Center, Vietnam is currently one of the countries with the fastest-growing digital economy in Southeast Asia.

Vietnam holds a strategic geopolitical position, possesses a youthful and abundant well educated workforce in technology, and has increasingly modern infrastructure investments, attracting more and more major global technology corporations, particularly in the fields of the semiconductor industry and artificial intelligence.

Binh Minh

Hanoi has approved the expansion of key roads around West Lake and a new bridge connecting Thuy Su Lake to Dam Tri. The project aims to improve urban infrastructure while preserving the lake’s natural beauty.

Hanoi has approved plans to expand roads around West Lake. (Photo: Thach Thao)

The Hanoi People’s Committee has approved a proposal to study the expansion of roads surrounding West Lake in Tay Ho District. Additionally, authorities have permitted research into constructing a bridge between Thuy Su Lake and Dam Tri, aiming to improve infrastructure and enhance the scenic landscape.

During a recent meeting on urban upgrades around West Lake, the Hanoi People’s Committee largely agreed with the proposals from Tay Ho District and relevant city departments.

As a result, the city has officially incorporated the West Lake road expansion project into the updated zoning plan for West Lake and surrounding areas.

Urban development around West Lake

Tay Ho District will collaborate with relevant departments to incorporate the proposed road expansions, pedestrian pathways, wharf improvements, and landscape enhancements into the West Lake Conservation and Development Plan.

The study will also explore the construction of a bridge connecting Thuy Su Lake and Dam Tri, ensuring a design that is aesthetically pleasing, compact, and functional while minimizing any impact on the lake environment.

Key road expansion projects

The city has approved the expansion of Quang An Street and Tu Hoa Street, with both roads set to be widened to 21 meters.

Authorities have emphasized that the road expansions must maintain high aesthetic standards and minimize encroachment on the lake’s surface.

The planning and approval process for these projects is expected to be completed within two months.

West Lake: Hanoi’s largest natural lake

West Lake is Hanoi’s largest natural lake, covering approximately 530 hectares with a 15-kilometer circumference. It is believed to be a remnant of an ancient Red River tributary.

According to a 2017 biodiversity survey conducted by Tay Ho District, the lake is home to a rich ecosystem, including 72 species of phytoplankton, 29 species of benthic organisms, 12 crustacean species, and 46 fish species.

These planned upgrades aim to balance urban development, environmental preservation, and enhanced public access to one of Hanoi’s most iconic landmarks.

Quang Phong