VN-Index rose 10.7%, and Vietnam was among the best-performing markets in April. However, the breadth of gains was relatively limited, as the rally was mainly concentrated in large-cap stocks in the real estate and banking sectors. Statistics show that the “Sell in May” effect was not very evident in the Vietnamese market.

In April, the average daily trading value across the three exchanges declined significantly compared to the previous month. High interest rate levels and cautious investor sentiment ahead of a long holiday period weighed on market liquidity.

In April, foreign investors continued to be net sellers, with net outflows of VND 13,438 billion, mainly concentrated in the real estate and banking sectors.

Rising inflationary pressure is creating significant challenges for implementing accommodative monetary policy to support growth. Interest rates remain high, credit growth is slowing, and valuations have returned to historical average levels. This may reduce the short-term attractiveness of the market, especially as the VN-Index has returned to its previous peak levels.

After a strong rally in April, VN-Index’s upward momentum is expected to slow and may experience significant fluctuations in May as the market enters a period with fewer supportive catalysts, while interest rate conditions remain unfavorable and large-cap stocks face correction risks after their recent sharp gains. Stocks are likely to become more differentiated based on company-specific information. Investors should prioritize risk management and consider taking profits on stocks approaching resistance levels to protect gains.