The VN-Index (VNI) continued its rallies in the first month of the year. Following an increase of 6.4% in November and 3.3% in December, the VNI continued its rallies in the first month of 2024 thanks to several factors: (1) A strong surge in credit growth in December 2023 (13.7% as of the end of December 2023 vs 9.2% as of the end of November 2023) and a higher credit growth target for the banking sector (15% in 2024); (2) The National Assembly passed the amended Land Law and the amended Law on Credit Institutions on January 18, 2024; (3) The US stock market continuously hit fresh recorded high levels in January; and (4) Foreign investors net bought for the first time since March 2023.

Despite profit-taking pressure ahead of the Tet Holiday near the end of the month, the VND closed the month at 1,129, rising 3.0% in January. In January 2024, the VNI had the same performance with the Philippines’ PCOMP (+3.0%) and outperforming Thailand’s SET (-3.6%) and Indonesia’s JCI (-0.9%).

Price performance was diverse between sectors. The banks sector increased for the third consecutive month and recorded the strongest monthly increase (+8.9%) amongst all sectors, attributed mainly to MBB (+16.6%), CTG (+16.6%), VCB (+10.2%), and BID (+9.9%). Financial services ranked second with a 3.3% gain, supported mainly by MBS (+13.2%), HCM (+11.5%), BSI (+10.7%), and FTS (+7.3%). In contrast, real estate (-2.3%), consumer goods (-1.7%), and oil & gas (-1.2%) were the top laggards.

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