Since earlier this year, foreign investors trading on the Hanoi and Ho Chi Minh City bourses have purchased nearly 6.3 trillion VND (nearly 334 million USD).
This is a huge recovery compared to late 2009, when transactions dropped sharply as investors were worried about rising inflation and the global economic crisis.
Financial analysts say that the recent spate of aggressive foreign buying can be put down to a growing optimisim amongst foreign investors over signs of recovery in Vietnam’s economy.
According to Dang Pham Minh Loan, Director of Investments at VinaCapital, many overseas investors are pumping their monies into Vietnam as the country’s economic prospects have become more appealing.
Besides trading directly on the floor, many investors also poured their capital in the market through investment funds.
Pham Duc Trung, General Director of the FPT Capital Fund Management Company, said that his company’s foreign partners are extremely positive about the market.
The 100 million USD Vietnam Dream Fund has recently been established to invest mainly in listed companies on the bourses. It is a joint venture between United Investments, the Japan Asian Group’s fund management company and MB Capital, the fund manager for the Military Bank of Vietnam .
Previously, Vietnam Fund Management (VFM) launched its Vietnam Active Investment Fund (VFA) with a total capital of 240 billion VND, of which more than 16 percent was contributed by investors.
Meanwhile Vietnam Asset Management along with Malaysia’s Hong Leong Fund Management set up Vietnam’s 2 nd investment fund.
Observers say that foreign investors mainly focus on the stocks of large companies or blue chips, including HSG of Hoa Sen Group, HAG of the Hoang Anh Gia Lai Joint Stock Company, FPT of the FPT Joint Stock Company, SJS of Song Da Urban and Industrial Zone Investment and Development and BVH under the Bao Viet group.
However, CEO of the SJC Securities Company Huynh Anh Tuan said that foreign transactions, despite steadily rising, are yet to have a strong influence on the local market. At present, the volume of foreign transactions accounts for only 10-15 percent of the total trade on both bourses./.
This is a huge recovery compared to late 2009, when transactions dropped sharply as investors were worried about rising inflation and the global economic crisis.
Financial analysts say that the recent spate of aggressive foreign buying can be put down to a growing optimisim amongst foreign investors over signs of recovery in Vietnam’s economy.
According to Dang Pham Minh Loan, Director of Investments at VinaCapital, many overseas investors are pumping their monies into Vietnam as the country’s economic prospects have become more appealing.
Besides trading directly on the floor, many investors also poured their capital in the market through investment funds.
Pham Duc Trung, General Director of the FPT Capital Fund Management Company, said that his company’s foreign partners are extremely positive about the market.
The 100 million USD Vietnam Dream Fund has recently been established to invest mainly in listed companies on the bourses. It is a joint venture between United Investments, the Japan Asian Group’s fund management company and MB Capital, the fund manager for the Military Bank of Vietnam .
Previously, Vietnam Fund Management (VFM) launched its Vietnam Active Investment Fund (VFA) with a total capital of 240 billion VND, of which more than 16 percent was contributed by investors.
Meanwhile Vietnam Asset Management along with Malaysia’s Hong Leong Fund Management set up Vietnam’s 2 nd investment fund.
Observers say that foreign investors mainly focus on the stocks of large companies or blue chips, including HSG of Hoa Sen Group, HAG of the Hoang Anh Gia Lai Joint Stock Company, FPT of the FPT Joint Stock Company, SJS of Song Da Urban and Industrial Zone Investment and Development and BVH under the Bao Viet group.
However, CEO of the SJC Securities Company Huynh Anh Tuan said that foreign transactions, despite steadily rising, are yet to have a strong influence on the local market. At present, the volume of foreign transactions accounts for only 10-15 percent of the total trade on both bourses./.
