The real estate stock price index had fallen 25 per cent since the beginning of the year as of mid-June, equaling the decline of the VN-Index. SSI Research therefore believes real estate stock prices have come down to an attractive level for long-term holding.

Based on FiinPro’s forecast for after-tax profit growth of 38 per cent in 2021 and 27 per cent in 2022, Vietnamese stocks will be valued at 18.2 times 2021 profit and 14.3 times 2022 profit. This shows that the outlook for 2021 profit is already reflected in the stock price while the market valuation remains attractive with a one-year outlook.