Sunday, September 22, 2019 12:38:14 AM - Markets open
VN-INDEX 990.36 -6.74/-0.68%
HNX-INDEX 104.14 +0.10/+0.10%
UPCOM-INDEX 56.97 +0.27/+0.48%
Foreign investors piling on Vietnamese stocks
VietnamPlus - 3/6/2019 10:16:51 AM
 (0 ratings. You must sign in to rate.)
Vietnamese stock market sucked in a further 2.75 billion USD of foreign fund flows after Tet (Lunar New Year), demonstrating investors’ positive sentiments towards this emerging market.
Experts have said that the escalating US-China trade tensions present the Vietnamese stock market with an encouraging atmosphere for growth in 2019 as foreign investors have a brighter outlook on emerging markets.
Recently, investors from the Republic of Korea, Japan and Thailand, among others have been pouring capital into Vietnamese stocks via various merger and acquisition (M&A) deals.
Dominic Scriven, Chairman of fund management firm Dragon Capital, said that despite a tough 2018 in terms of both economic and political issues in the world, the Vietnamese stock market remained stable and was in a somewhat better situation than its counterparts like Indonesia, Thailand and the Philippines thanks to the Government’s timely and flexible macro-financial policies.
In the past four years, the equitisation of State-owned companies has resulted in a strong national stock market, especially serving as a magnet for foreign investors, he added.
MB Securities JSC said that liquidity on the market hit its highest figure in four months, backed by foreign capital disbursement through domestic and foreign exchange-traded funds (ETFs) such as VanEck Vectors Vietnam ETF, db x-trackers Vietnam ETF, and VFMVN30 ETF.
According to Vice Chairman of the State Securities Commission (SSC) Pham Hong Son, Vietnam has become more attractive to foreign players after the UK-based financial and business information firm FTSE Russell (FTSE) announced on September 27 last year that Vietnam is currently classified as a frontier market and is being added to the watch list for possible reclassification as a secondary emerging market.
He evaluated 2018 as a successful year for the Vietnamese stock market as the stock market capitalisation reached some 3,900 trillion VND (167.75 billion USD), up 12.7 percent year-on-year, and accounting for 71.6 percent of the annual gross domestic product (GDP).
In particular, after one year of operation, the derivatives market has proved its role as an effective investment channel and hedging against risk, helping to stabilise investors’ confidence when the base market was highly volatile. 
Vietnam aims to make the size of its stock market equal to 100 percent and 120 percent of the gross domestic product (GDP) in 2020 and 2025, respectively. The country also looks to develop its bond market to be equivalent to 47 percent and 55 percent of the GDP in those respective years.
Meanwhile, the number of listed companies next year needs to increase by at least 20 percent from 2017. The number of investors in the market should account for 3 percent of the population in 2020 and 5 percent in 2025, Deputy Prime Minister Vuong Dinh Hue said at a meeting of the SSC in Hanoi in February.
He noted that in 2019, relevant agencies must take stronger actions to develop a transparent, professional and modern market that matches international practices, thus enhancing investors’ trust so as to soon upgrade Vietnam’s stock market from a frontier to an emerging market.
Deputy PM Hue also requested that they ensure a reasonable structure between private and organisation investors, and between domestic and foreign ones, while facilitating the development of professional investors.
The Ministry of Finance and the SSC need to make the financial market healthier and improve the capacity of securities business organisations, he said, adding that all transaction and payment technologies on the stock market must be reformed by 2020. –VNA
Read original article here
Newer News
21/09 VN stocks change little with increased selling
20/09 VN stocks driven up by large-cap sector
18/09 Energy firms drive VN-Index up for 4th day
17/09 Auto stocks to grow thanks to rising consumption
16/09 Market growth to slow as momentum runs out
13/09 VN-Index stops declining, tech shares jump on earnings report
12/09 VN stocks make modest gains on mid-cap and small-cap firms
11/09 VN stocks fall amid lack of support
09/09 Market trend hard to predict after difficult week
06/09 VN-Index drops for three straight days
Older News
05/03 VN stocks to progress on annual meetings season
04/03 VN stocks to progress on annual meetings season
01/03 HFT: Securities to tie up with Korean firm
28/02 VN-Index returns to positive territory
25/02 Stock markets forecast to remain positive
22/02 VN-Index rises for fourth session
22/02 Derivatives fees repel investors
21/02 Shares extend gains thanks to large-caps
21/02 Global ETFs may eye eight VN blue chips
18/02 Securities trading codes issued to 265 foreign investors in January
Newsletter Signup
Top Stories
Crude import tax zeroed in November
VN central bank makes first key rate cut since 2017
Total UPCoM firms reach 850 in August
ACV: Gov't should buy back shares from ACV's foreign shareholders: MoT
EU enhances inspections on Vietnam’s agricultural products from Sept 1
Market Update
Last updated at 3:10:00 PM
VN-INDEX 990.36 -6.74/-0.68%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.