- Top 3 position in the industry (market share >15% and growing)
- Clear competitive advantage (proprietary technology, strong brand, extensive distribution network)
- Ability to adapt quickly to market fluctuations (proven through the COVID-19 pandemic)
- Leadership with long-term vision and >10 years industry experience
- Investing at least 5-10% of revenue in R&D or new market expansion
Pocket Option - High Growth Stock Codes for Smart Investors
Vietnam's stock market is developing rapidly, creating significant investment opportunities with VN-Index growth of 12.2% in 2023. This article provides a detailed analysis of high growth stock codes based on actual data, helping you build an effective investment portfolio in the context of declining interest rates and strong FDI flows into Vietnam.
Bearish
Overview of Growth Stocks in the Vietnamese Market
Finding good growth stocks is the primary goal of every successful investor in the Vietnamese stock market. Unlike the US or Singapore, Vietnam's stock market has lower liquidity, higher volatility, and is heavily influenced by individual investors (accounting for over 80% of transactions).
The 2022-2024 period witnessed significant market changes. After VN-Index fell sharply by 32.8% in 2022 due to monetary tightening policies, the market recovered with a 12.2% increase in 2023. Analyses from Pocket Option show that 2024-2025 could be a boom period for the best stocks as interest rates are at low levels (below 5%) and FDI capital reaches record levels with $13.5 billion just in the first 6 months of 2024.
| Index | 2022 | 2023 | Forecast 2024 |
|---|---|---|---|
| VN-Index | 1,007.09 (-32.8%) | 1,129.93 (+12.2%) | 1,350-1,450 (+19.5-28.3%) |
| HNX-Index | 213.17 (-47.2%) | 229.81 (+7.8%) | 270-290 (+17.5-26.2%) |
| UPCOM-Index | 73.42 (-29.3%) | 86.75 (+18.2%) | 95-105 (+9.5-21.0%) |
| Average daily trading value (billion VND) | 14,000 | 15,700 | 19,000-21,000 |
It's important to distinguish between growth stocks and value stocks in the Vietnamese market. Growth stocks are those with revenue and profit growth rates exceeding the general level (usually >15-20%/year), while value stocks are those with low valuations compared to intrinsic value. In Vietnam, typical growth companies operate in technology (FPT, CMG), digital banking (TCB, MBB), and modern retail (MWG, FRT).
Criteria for Identifying Growth Stocks on the Vietnamese Stock Market
Before investing in Vietnam's top 30 stocks, smart investors need to understand 6 important criteria. According to research data from Pocket Option with over 1,500 Vietnamese investors, the following factors determine success in growth stock investing:
Most Important Financial Indicators
| Indicator | Ideal Level for Growth Stocks | Significance |
|---|---|---|
| Revenue Growth | >15% annually (continuous for 3 years) | Demonstrates ability to expand market share and brand strength |
| EPS Growth | >20% annually (continuous for 3 years) | Ability to increase profits for shareholders each year |
| ROE | >15% (at least 10% higher than bank interest rates) | Management's capital utilization efficiency |
| Gross Profit Margin | Growth of at least 1-2% each year | Ability to optimize costs and create added value |
| Debt/EBITDA | <3 (ideally <2) | Debt repayment ability and financial safety |
Besides financial indicators, macroeconomic and industry factors play a decisive role. Analyses from Pocket Option experts show that good growth stocks are often in 5 industries benefiting from Vietnam's economic development policies for 2025-2030: information technology, digital banking, modern retail, renewable energy, and electronic component manufacturing.
A notable viewpoint is that high P/E is not a barrier for real growth stocks. Many Vietnamese investors focus too much on low P/E and miss big opportunities. Example: FPT with P/E 22 in 2018 was considered "expensive," but has increased 4 times in price after 5 years. Instead, the PEG ratio (P/E divided by growth rate) below 1.5 is truly important.
Industries with High Growth Potential in Vietnam
When searching for good growth stocks, choosing the right industry is the first step that determines 50% of success. Based on industry GDP growth figures and FDI capital flows, the following 6 industries are forecast to grow exceptionally during 2024-2026:
| Industry | Growth Potential | Specific Driving Factors | Risks to Note |
|---|---|---|---|
| Information Technology | 25-30% CAGR | $4 billion FDI in technology sector (2023), 96% of businesses are digitalizing | Shortage of 150,000 high-quality IT personnel by 2025 |
| Modern Retail | 18-22% CAGR | Modern retail ratio only 30% (compared to 70-80% in Thailand, Malaysia) | Retail space costs increasing 15-20%/year in major cities |
| Banking and Fintech | 15-20% CAGR | Only 51% of population has bank accounts (2023) | Potential bad debt from real estate loans 2020-2022 |
| Renewable Energy | 20-25% CAGR | Target of 30% renewable energy by 2030 (currently 12%) | Grid overload in some areas, unstable electricity pricing policies |
| Electronic Component Manufacturing | 22-28% CAGR | Samsung, Intel, LG expanding production by additional $5-8 billion in Vietnam | Dependence on global supply chains, shortage of input materials |
| Logistics | 15-18% CAGR | E-commerce growing 32%/year, Vietnam aims for top 30 global logistics | Logistics costs in Vietnam account for 16.8% of GDP (double that of developed countries) |
Data from Pocket Option indicates that small and medium companies (market cap 2,000-10,000 billion VND) in these industries are developing 30-40% faster than large enterprises. This is a reverse trend compared to developed markets, creating special investment opportunities for those who understand the Vietnamese market.
Detailed Development Trends by Sub-sector
Each industry has specific growth drivers. Below is a detailed analysis to identify good growth stocks in each sector:
- Information Technology: Priority for export software development companies (25-30% annual growth), cybersecurity services (35-40% annual growth), and cloud computing (45-50% annual growth).
- Modern Retail: Focus on businesses developing omni-channel models (online-offline integration), profit margin per store increasing at least 5-7%/year, and distribution systems covering the entire country.
- Banking: Priority for banks with CASA ratio >35%, low cost of capital (<3.5%), and digital banking user growth rate >50%/year.
- Renewable Energy: Choose businesses with high-efficiency technology (>20%), low capital costs, and projects at least 70% completed with 20-year PPAs.
Detailed Analysis of Vietnam's Top 30 Best Stocks
Based on Pocket Option's practical research with data from 3,000 listed companies, we analyze in depth about notable good growth stocks. This assessment is not just based on the latest 1-2 quarters but examines sustainable development trends over the past 3 years and future potential.
The table below analyzes the hottest stocks currently by industry group, with specific data on business results and prospects:
| Industry Group | Representative Stock | Specific Strengths | Growth Prospects |
|---|---|---|---|
| Banking | VCB | NPL only 0.68%, ROE 23.5%, CASA 34.6%, network of 601 branches | 15-18% annual profit after tax, plans to open 100 more branches by 2025 |
| TCB | Lowest cost of funds in industry (2.7%), 94% customers use app, CIR 30.5% | 18-22% profit after tax, developing payment platform attracting 5 million new users | |
| MBB | Integrated ecosystem (banking, insurance, securities), ROE 24.3% | 17-20% profit after tax, non-interest income reaching 35% of total income by 2025 | |
| Retail | MWG | 45% mobile phone market share, 35% electronic retail, expanding Bach Hoa Xanh chain | 20-25% revenue, net profit margin improving from 3.1% to 4.5% by 2025 |
| FRT | Long Chau chain reaches 1,000 stores, growing 200% annually | 15-18% general revenue, pharmaceutical segment growing >50%/year | |
| PNJ | Gross profit margin 19.8%, 40% premium jewelry market share, 365 stores | 18-22% profit after tax, opening 40-50 stores annually from 2024-2026 | |
| Technology | FPT | Foreign IT revenue growing 30%/year, profit margin in this segment 15.6% | 25-30% profit after tax in IT segment, contracts >$10 million increased 130% |
| CMG | Digital transformation contracts with 35 major corporations, profit after tax growth 78% (2023) | 22-28% revenue, developing AI and Cloud Computing for businesses |
The best stocks today not only have impressive business results but also can maintain long-term growth. Pocket Option's research shows these companies typically meet the "3 growth" model: increasing market share, increasing profit margins, and increasing asset turnover.
An important point to note: good growth stocks are typically valued 20-30% higher than the industry average. With the Vietnamese market's average P/E around 13-15, growth stocks usually have P/E of 18-22. However, the PEG ratio (P/E divided by growth) is a more important measure - look for stocks with PEG <1.2.
Effective Growth Stock Investment Strategy
After identifying suitable good growth stocks, building a practical investment strategy is the step that determines success. Based on the analysis of Pocket Option's 500 most successful investors in Vietnam, the following strategies have proven effective during 2020-2024:
Portfolio Allocation by Market Capitalization and Industry
Systematic diversification will help optimize returns and minimize risks. The allocation table below is suitable for each risk tolerance level:
| Risk Tolerance Level | Large-cap Stocks (>10,000 billion) | Mid-cap Stocks (1,000-10,000 billion) | Small-cap Stocks (<1,000 billion) | Cash/Bonds |
|---|---|---|---|---|
| High | 30-40% | 35-45% | 10-15% | 5-10% |
| Medium | 40-50% | 25-35% | 5-10% | 15-20% |
| Low | 50-60% | 15-25% | 0-5% | 25-30% |
The "core-satellite" strategy is delivering superior results for Vietnamese investors. Accordingly, 60-70% of the portfolio (core) is invested in 7-10 stable growth blue-chip stocks (VCB, FPT, VNM, MWG), while the remaining 30-40% (satellite) is allocated to 5-7 breakthrough growth stocks like DGC, PC1, DPM. This strategy helped Pocket Option investors' portfolios achieve an average return of 18.7%/year during 2019-2023, outperforming the VN-Index by 7.2%.
An effective approach to the Vietnamese market is the "gradual buying" strategy (improved DCA). Instead of simply buying periodically, you should: allocate 70% of capital to selected growth stocks when the VN-Index drops >10% from its peak, and use the remaining 30% to buy when stocks fall >15% due to market factors rather than company fundamentals.
- Set clear price targets (based on forward P/E and projected EPS for the next 2 years)
- Apply 7-10% stop-loss if the stock falls due to deteriorating fundamentals
- Rebalance portfolio quarterly after new financial reports
- Increase weight when P/E drops below the stock's 3-year average
- Closely monitor quarterly financial reports and react immediately when there are signs of growth decline
Common Mistakes When Investing in Growth Stocks
Through analysis of thousands of trading accounts, Pocket Option has compiled 7 common mistakes that cause Vietnamese investors to fail with growth stocks. Understanding and avoiding these errors will help protect your portfolio:
| Mistake | Specific Impact | Practical Solution |
|---|---|---|
| Buying based on rumors about the hottest stocks | 67% of investors buy at peak and suffer 15-25% losses within 3 months | Analyze financial reports from the last 4 quarters, only buy when you understand the business model |
| Focusing only on low P/E | Missing FPT (2019), MWG (2020) with potential profits >200% | Use PEG (P/E divided by growth), PEG <1.2 is reasonable |
| No risk management plan | Portfolios dropped an average of 42% during the 2022 decline | Apply capital allocation rule of no more than 10-15% in one stock |
| Trading too frequently | Transaction costs account for 3.5-4.8% of annual profits | Adhere to minimum holding period of 1-2 quarters after company releases financial statements |
| Not monitoring fundamental changes | 73% of investors don't sell stocks despite 2 quarters of profit decline | Sell immediately when company has 2 consecutive quarters of growth below 50% of expectations |
| Greed when profits are high | Not taking profits when stocks rise >50% in 6 months (usually will correct) | Apply partial selling: sell 30% when profit is 50%, another 30% when profit is 80-100% |
| Lack of patience | 58% of investors sell growth stocks after only 3-5 months of holding | Set minimum investment time of 1-2 years for growth stocks |
The most serious mistake is not distinguishing between speculative stocks and real growth stocks. A truly strong stock must be demonstrated through business results: continuous revenue and profit growth for 3-4 years, not just 1-2 quarters. Example: HPG grew profits by an average of 45% each year from 2016-2022 (except during Covid), while FLC only increased in price due to speculation without sustainable profit growth.
FOMO (Fear Of Missing Out) psychology has caused 72% of Vietnamese investors to buy stocks in high price zones. Statistics from Pocket Option show 65% of buy orders are placed after stocks have already risen >30% in 1 month. Instead, the "buy on bad days" strategy will be more effective: create a list of 10-15 good growth stocks and only buy when the general market corrects strongly.
Prospects for Good Growth Stocks in the Future
Based on macroeconomic data and forecasts from Pocket Option, Vietnamese growth stocks are entering a new growth cycle for 2024-2027 with specific drivers:
- Vietnam's GDP is expected to grow 6.5-7% in 2024-2025, much higher than the 2.5-3% average of developed economies
- Comprehensive digital transformation with 53.5% of businesses having implemented it (up from 27.2% in 2020), creating opportunities for technology companies
- Rapidly growing middle class, expected to reach 40-45 million people by 2025 (currently about 33 million), boosting premium consumption
- FDI capital reaching record $22.4 billion (2023) and expected to reach $25-30 billion/year during 2024-2026
- Potential market upgrade from frontier to emerging in 2025-2026, possibly attracting $2-5 billion in new foreign capital
In this context, good growth stocks will continue to have superior potential. Based on Pocket Option's DCF valuation model, leading growth stocks can deliver returns of 17-25% annually during 2024-2027, significantly higher than the average return of 10-12% for the VN-Index.
The ESG (Environmental, Social, Governance) trend is gradually becoming important in Vietnam. 47% of foreign investment funds are now applying ESG criteria when selecting stocks in Vietnam, up from 23% in 2020. Companies leading in sustainable development such as REE (renewable energy), VNM (high environmental standards), and FPT (transparent governance) are being valued 10-15% higher than competitors in the same industry.
Conclusion
Finding and investing in good growth stocks in Vietnam requires a systematic approach and high discipline. With the characteristics of Vietnam's young stock market (only 23 years old) and dominated by individual investors (>80% of transactions), smart investors need to focus on fundamental analysis and avoid short-term speculation trends.
To succeed with growth stocks, you need to take 5 important steps: (1) select industries with high growth potential, (2) identify industry-leading companies with clear competitive advantages, (3) carefully analyze financial indicators (especially revenue growth, profit, ROE), (4) apply appropriate portfolio allocation strategy, and (5) manage risk effectively with a specific plan.
Pocket Option provides in-depth analysis tools and monthly industry reports helping investors capture opportunities with good growth stocks. With the right strategy, Vietnamese investors can build effective investment portfolios with attractive returns of 15-20%/year in the long term.
Vietnam's stock market is in a strong development phase, opening up many great opportunities for those with the right knowledge, methods, and discipline. Investing in good growth stocks not only helps you achieve financial goals but also contributes to the development of Vietnam's economy in the future.
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