Artificial Intelligence lends tech stocks extra promise in Vietnam: expert

Technology stocks will continue to carry positive investment potential in Vietnam, given the context of a strong surge in artificial intelligence (AI) applications, said a financial expert.

Phan Dung Khanh, Maybank Investment Bank's investment consulting director, was speaking on Thursday at a stock talk show on “Choosing stocks to catch the wave of second quarter business results.”

Khanh observed that stock purchases were based on future expectations. This was reflected in the fact that stock prices of companies whose current business results were not good continued to increase sharply.

Apart from tech stocks, transportation stocks, including aviation and sea, as well as renewables have good prospects.

"Although the property market is going through a difficult phase, real estate stocks have good prospects because housing prices in the past two years have not increased much compared to stocks, gold and foreign exchange. A series of policies and amended laws, when they take effect, will support the market, so real estate stocks also have potential."

Le Tu Quoc Hung, a senior analyst at Rong Viet Securities, said banking, securities, steel and wood exports were industries poised to deliver good results.

Truong Dac Nguyen, head of research at Wigroup Financial Data Company, said securities, retail and industrial real estate were promising sectors. He noted with continued strong FDI inflows and accelerated disbursement of public investment, industrial park real estate stocks would prosper.

Dealing with 1,300 point threshold

Experts at the stock talk said that when investing, investors should only look at the general market to see trends and make reasonable decisions without taking undue risks.

Hung with Rong Viet Securities advised investors to consider the prospects of each stock and limit the use of financial leverage.

Nguyen with Wigroup Financial Data said that the market was still challenging given the interest rate and exchange rate situations, but stocks were still a promising investment channel. Whether or not the VN-Index can surpass the 1,300-point mark is not as important as screening companies to identify good stocks.

"The general market is only for reference; investors do not buy indexes. They buy stocks. The market had many "super stocks" in the first half of the year from the technology, shipping and chemicals industries. While the VN-Index fluctuates very slowly, we must observe the trend of cash flow in the past for reference only and pay attention to the future prospects," said Khanh.