The VN-Index (VNI) retreated due to increased profit-taking. The VNI maintained its upward momentum in the first few days of April before it mostly declined over the rest of the month due to increased profit-taking. Nevertheless, the VNI slightly recovered at the end of the month as market sentiment improved following the issuance of Circular 02/2023/NHNN, which provides banks with a legal framework to restructure loan repayment terms and maintain loan groups, and Circular 03/2023/NHNN, which allows banks to buy back issued unlisted corporate bonds within 12 months (effective through December 31, 2023). These circulars are expected to remove some obstacles in banking as well as the corporate bond market. The VNI closed April at 1,049 (-1.5% MoM). Compared to the end of 2022, the VNI had increased 4.2%, outperforming other regional markets such as Indonesia’s JCI (1.0%), the Philippines’ PCOMP (0.9%) and Thailand’s SET (-8.4%).

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