Vietnam's stock market has recently experienced a significant decline, with the VN-Index closing at 1,795.21 points, down 57.87 points from the previous week. This drop marks a critical moment as the index has officially fallen below the 1,800-point threshold. Analysts suggest that investors should exercise caution in the upcoming trading week, as there has been no visible demand to support a rebound.

Despite the VN-Index set to be upgraded on September 21, projections indicate that it may further decrease to around 1,765 points. Experts from the Bank for Investment and Development of Vietnam Securities (BSC) believe that profit-taking pressure following a strong recovery in previous weeks could persist in the short term, leading the index to test lower support levels.

Similarly, Bao Viet Securities (BVSC) has noted a significant increase in selling pressure, causing the index to break through critical support levels, which heightens the risk of further adjustments. The prevailing trend shows a strong outflow of capital, with sellers dominating the market. Consequently, experts recommend that investors prioritize reducing their portfolio weights to safer levels and adhere to strict risk management practices, particularly for positions that have breached stop-loss thresholds.

Investors are advised against trying to catch the bottom during steep declines and should wait for the market to establish a more solid equilibrium. Technically, Viet Capital Securities (VCSC) highlights that the VN-Index is approaching the 200-day moving average support level, estimated between 1,788 and 1,790 points. However, ongoing adjustment pressures from major capitalized stocks, such as Vingroup and banks, may push the index towards the 1,770 to 1,780 point range.

On a more positive note, VCSC believes that while the VN-Index is declining, it will trade within the support range of 1,780 to 1,790 points. Any potential recoveries are likely to be capped around the 1,810-point level. Vietcombank Securities (VCBS) shares the view that the 1,780 to 1,790 range is the nearest support area. Overall, the loss of the 1,800-point mark has made the 1,780 to 1,790 range a critical short-term support zone.

Investors are encouraged to reduce their exposure and refrain from bottom-fishing while the market remains fraught with risks. Key factors to monitor in the upcoming week include capital flow dynamics, trading activities of large-cap stocks, and foreign investor transactions. Notably, this period of volatility occurs just before September 21, when Vietnamese stocks will be officially included in the FTSE Russell global indices as a secondary emerging market.

Globally, stock markets are also experiencing fluctuations, especially in Asia, as investors focus on the U.S. Federal Reserve's interest rate policies and oil price movements. Currently, Brent crude oil prices are nearing $110 per barrel amid tensions in the Middle East, raising concerns about inflation and high interest rates.