Authorities check the result of equitisation of a State-owned company (Photo: www.qdnd.vn) Hanoi (VNA) – Vietnamese stock market sucked in a further 2.75 billionUSD 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 theVietnamese stock market with an encouraging atmosphere for growth in 2019 asforeign investors have a brighter outlook on emerging markets.
Recently, investors from the Republic of Korea, Japan and Thailand, amongothers have been pouring capital into Vietnamese stocks via various merger andacquisition (M&A) deals.
Dominic Scriven, Chairman of fund management firm Dragon Capital, said thatdespite a tough 2018 in terms of both economic and political issues in theworld, the Vietnamese stock market remained stable and was in a somewhat bettersituation than its counterparts like Indonesia, Thailand and the Philippines thanksto the Government’s timely and flexible macro-financial policies.
In the past four years, the equitisation of State-owned companies has resultedin a strong national stock market, especially serving as a magnet for foreigninvestors, he added.
MB Securities JSC said that liquidity on the market hit its highest figure infour months, backed by foreign capital disbursement through domestic andforeign exchange-traded funds (ETFs) such as VanEck Vectors Vietnam ETF, dbx-trackers Vietnam ETF, and VFMVN30 ETF.
According to Vice Chairman of the State Securities Commission (SSC) Pham HongSon, Vietnam has become more attractive to foreign players after the UK-basedfinancial and business information firm FTSE Russell (FTSE) announced onSeptember 27 last year that Vietnam is currently classified as a frontiermarket and is being added to the watch list for possible reclassification as asecondary emerging market.
He evaluated 2018 as a successful year for the Vietnamese stock market as thestock market capitalisation reached some 3,900 trillion VND (167.75 billionUSD), up 12.7 percent year-on-year, and accounting for 71.6 percent of theannual gross domestic product (GDP).
In particular, after one year of operation, the derivatives market has provedits role as an effective investment channel and hedging against risk, helping tostabilise investors’ confidence when the base market was highly volatile.
Vietnam aims to make the size of itsstock 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 tobe equivalent to 47 percent and 55 percent of the GDP in those respectiveyears.
Meanwhile, the number of listed companies nextyear needs to increase by at least 20 percent from 2017. The number ofinvestors in the market should account for 3 percent of the population in 2020and 5 percent in 2025, Deputy Prime Minister Vuong Dinh Hue said at a meetingof the SSC in Hanoi in February.
He noted that in 2019, relevant agencies musttake stronger actions to develop a transparent, professional and modern marketthat matches international practices, thus enhancing investors’ trust so as tosoon upgrade Vietnam’s stock market from a frontier to an emerging market.
Deputy PM Hue also requested that they ensure areasonable structure between private and organisation investors, and betweendomestic and foreign ones, while facilitating the development of professionalinvestors.
The Ministry of Finance and the SSC need to makethe financial market healthier and improve the capacity of securities businessorganisations, he said, adding that all transaction and payment technologies onthe stock market must be reformed by 2020. –VNA
Experts have said that the escalating US-China trade tensions present theVietnamese stock market with an encouraging atmosphere for growth in 2019 asforeign investors have a brighter outlook on emerging markets.
Recently, investors from the Republic of Korea, Japan and Thailand, amongothers have been pouring capital into Vietnamese stocks via various merger andacquisition (M&A) deals.
Dominic Scriven, Chairman of fund management firm Dragon Capital, said thatdespite a tough 2018 in terms of both economic and political issues in theworld, the Vietnamese stock market remained stable and was in a somewhat bettersituation than its counterparts like Indonesia, Thailand and the Philippines thanksto the Government’s timely and flexible macro-financial policies.
In the past four years, the equitisation of State-owned companies has resultedin a strong national stock market, especially serving as a magnet for foreigninvestors, he added.
MB Securities JSC said that liquidity on the market hit its highest figure infour months, backed by foreign capital disbursement through domestic andforeign exchange-traded funds (ETFs) such as VanEck Vectors Vietnam ETF, dbx-trackers Vietnam ETF, and VFMVN30 ETF.
According to Vice Chairman of the State Securities Commission (SSC) Pham HongSon, Vietnam has become more attractive to foreign players after the UK-basedfinancial and business information firm FTSE Russell (FTSE) announced onSeptember 27 last year that Vietnam is currently classified as a frontiermarket and is being added to the watch list for possible reclassification as asecondary emerging market.
He evaluated 2018 as a successful year for the Vietnamese stock market as thestock market capitalisation reached some 3,900 trillion VND (167.75 billionUSD), up 12.7 percent year-on-year, and accounting for 71.6 percent of theannual gross domestic product (GDP).
In particular, after one year of operation, the derivatives market has provedits role as an effective investment channel and hedging against risk, helping tostabilise investors’ confidence when the base market was highly volatile.
Vietnam aims to make the size of itsstock 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 tobe equivalent to 47 percent and 55 percent of the GDP in those respectiveyears.
Meanwhile, the number of listed companies nextyear needs to increase by at least 20 percent from 2017. The number ofinvestors in the market should account for 3 percent of the population in 2020and 5 percent in 2025, Deputy Prime Minister Vuong Dinh Hue said at a meetingof the SSC in Hanoi in February.
He noted that in 2019, relevant agencies musttake stronger actions to develop a transparent, professional and modern marketthat matches international practices, thus enhancing investors’ trust so as tosoon upgrade Vietnam’s stock market from a frontier to an emerging market.
Deputy PM Hue also requested that they ensure areasonable structure between private and organisation investors, and betweendomestic and foreign ones, while facilitating the development of professionalinvestors.
The Ministry of Finance and the SSC need to makethe financial market healthier and improve the capacity of securities businessorganisations, he said, adding that all transaction and payment technologies onthe stock market must be reformed by 2020. –VNA
VNA
