Vietnam Sector Outlook_2016Q2_20160414_EN

As discussed in our Sector outlook report 2016, in the first quarter, sector selection became more
challenging for investors. Stock market volitied in V-shaped, from 579 points down to 521, before
recovering to 561 just in the first quarter of 2016. Stock diversion became apparent: even in the same
sector, stocks with good business results outperformed the ones with less improvements. Most of our
statements on investment topics were proved in the first quarter, although some recommended sectors
and stocks failed our expectation.
Quarter II focuses on changes and expectations, with the AGM season bringing news about loosening
foreigners’ ownership room and 2016 business plans. On the global context, quarter II witnesses final
preparation for US presidential election, the Brexit plan of United Kingdom, the OPEC meeting and FOMC.
To assess the stock attractiveness, investors should examine the business’s potential to grow core
operations, as well as its external impacts. We maintain a cautious view and believe that the
opportunities still available but not without a very careful in choosing sectors and stocks. Our
assessments on investment topics, sectors and timing for 2016 are based on the analysis of (1) Influential
policies and information in 2016; (2) Changes in macroeconomics and stock market as identified in the
Macroeconomic and stock market report March 2016.