We believe the residential sector, especially in Ho Chi Minh City, has entered a bottoming period. The recovery is not yet strong, but we believe it will be apparent within the next 1-2 years. Selected developers are likely to outperform. We like BCI and DXG as 1) D/E of 0.7 or less, 2) land bank concentrated in HCMC, area where recovery signs are most apparent, 3) good product positioning, and 4) discount to RNAV above 30%. P/Bs being close to historical lows adds comfort.