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Pocket Option - High Growth Stock Codes for Smart Investors

Pocket Option - High Growth Stock Codes for Smart Investors

10 min to read

10 April 2025

10 min to read

High Growth Stock Codes: Effective Investment Strategy 2024-2025

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.

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.

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

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.

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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.

FAQ

How to identify a good growth stock in the Vietnamese market?

To identify good growth stocks, you need to evaluate 5 key factors: stable revenue and profit growth (>15%/year for 3 consecutive years), high ROE (>15%), top 3 position in the industry (market share >15%), experienced leadership (>10 years in the industry), and operation in a sector with development potential. Other important indicators include: PEG <1.2, steadily increasing gross profit margin, and debt/EBITDA ratio <3. Checking the financial reports of the last 4 quarters is mandatory.

Which sectors currently have the best stocks in the Vietnamese market?

The best stocks currently are concentrated in 6 sectors with outstanding growth: information technology (FPT, CMG) with 25-30%/year growth thanks to digital transformation trends and software exports; digital banking (TCB, MBB, VCB) with new penetration rate of 51%; modern retail (MWG, FRT, PNJ) benefiting from middle class growth of 15%/year; renewable energy (PC1, REE) with a target of 30% renewable energy by 2030; electronic component manufacturing (DGC, HPG) driven by FDI from Samsung, Intel; and logistics (GMD, HAH) serving e-commerce growing at 32%/year.

How should an investment portfolio be allocated to growth stocks?

Effective portfolio allocation follows the "core-satellite" model: 60-70% in 7-10 stable growth blue-chip stocks (VCB, FPT, MWG), 30-40% in 5-7 breakthrough growth stocks (mid-sized companies with market capitalization of 2,000-10,000 billion VND). For investors with moderate risk tolerance, the allocation should be: 40-50% in large-cap stocks, 25-35% in mid-cap stocks, 5-10% in small-cap stocks, and 15-20% in cash/bonds. Apply a gradual buying strategy when the VN-Index drops >10% and target stocks drop >15% due to market factors.

What are the common mistakes when investing in growth stocks?

The 7 most common mistakes are: buying based on rumors about hot stocks (67% of investors buy at the peak); focusing too much on low P/E and missing big opportunities; not having a risk management plan (leading to 42% losses in the 2022 downturn); trading too frequently (costs account for 3.5-4.8% of profits); not monitoring fundamental changes (73% of investors hold stocks despite declining profits); greed in not taking profits when gains are large; and lack of patience (58% sell stocks after only 3-5 months). The most serious is not distinguishing between speculative stocks and real growth stocks.

How to effectively monitor and manage a growth stock portfolio?

Effectively managing a growth stock portfolio requires 6 specific steps: (1) Monitor quarterly financial reports, especially revenue and profit growth rates; (2) Rebalance the portfolio quarterly after new reports are released; (3) Apply a 7-10% stop-loss rule if fundamentals deteriorate; (4) Take partial profits: sell 30% when gaining 50%, another 30% when gaining 80-100%; (5) Increase allocation when P/E drops below the 3-year average; (6) Sell immediately when a company has 2 consecutive quarters of growth below 50% of expectations. Use Pocket Option's analytical tools to continuously evaluate portfolio performance.