Vietnam’s economy will benefit in 2013 from a recovery in US and Chinese growth, falling interest rates, stable inflation, a good balance of payments situation, and a firm Dong. However, with banks and real estate companies making up half the stock market, we cannot be bullish for share prices until the government takes action and addresses the NPL problem. We thus recommend investors to avoid most bank and property stocks, and focus on consumer names, FPT, energy plays and rubber.