Emerging Asian economies, including Vietnam, would attract more foreign investment after the crisis in the securities market thanks to their high economic growth, according to the Asian Development Bank (ADB).
"What we are observing in the last two days in the market is really a panic selloff," said Iwan Azis, Head of the ADB’s Office of Regional Economic Integration, which prepared the report, “Asia Capital Markets Monitor”.
"But we are of the opinion that as the dust settles, capital flows coming to emerging Asia will continue," he said at the launch of the annual Asia Capital Markets Monitor report on August 9.
The current crisis in global financial markets will not stop the flow of investments in the medium term to Asian economies, including China, Hong Kong, India, Indonesia, the Republic of Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam, according to the economist.
According to the ADB’s report, along with the strict control of the financial market and foreign exchange reserves, the Asian region now has surplus reserves and liquidity after the Asian financial crisis in 1997. Therefore, there will be many financial tools to attract investors.
While noting growth in emerging Asia is forecast at a robust 7.9 percent in 2011 and 7.8 percent in 2012, the report warns that downside risks loom large as monetary authorities across the region step up their fight against inflation amid increased global economic uncertainty and heightened financial volatility.
Despite visible improvement in emerging Asia’s capital markets, persistent vulnerabilities to external shocks suggest the region’s collective efforts are necessary to enhance market resilience.
“Providing deep and liquid markets with strong market infrastructure is essential to support the region’s financial development and integration,” Iwan Azis said./.
"What we are observing in the last two days in the market is really a panic selloff," said Iwan Azis, Head of the ADB’s Office of Regional Economic Integration, which prepared the report, “Asia Capital Markets Monitor”.
"But we are of the opinion that as the dust settles, capital flows coming to emerging Asia will continue," he said at the launch of the annual Asia Capital Markets Monitor report on August 9.
The current crisis in global financial markets will not stop the flow of investments in the medium term to Asian economies, including China, Hong Kong, India, Indonesia, the Republic of Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam, according to the economist.
According to the ADB’s report, along with the strict control of the financial market and foreign exchange reserves, the Asian region now has surplus reserves and liquidity after the Asian financial crisis in 1997. Therefore, there will be many financial tools to attract investors.
While noting growth in emerging Asia is forecast at a robust 7.9 percent in 2011 and 7.8 percent in 2012, the report warns that downside risks loom large as monetary authorities across the region step up their fight against inflation amid increased global economic uncertainty and heightened financial volatility.
Despite visible improvement in emerging Asia’s capital markets, persistent vulnerabilities to external shocks suggest the region’s collective efforts are necessary to enhance market resilience.
“Providing deep and liquid markets with strong market infrastructure is essential to support the region’s financial development and integration,” Iwan Azis said./.
