The goal of the VIFC is to make it easier for foreigners to invest in and profit from Vietnam’s economic development. Its establishment was motivated by Vietnam’s estimated 1.5 trillion USD funding gap – money Vietnam needs in the coming years to industrialise the country.
Listed companies’ earnings growth is expected to recover from zero last year to 10-15% this year, but with a wide variation between sectors, according to Michael Kokalari, a chartered financial analyst and chief economist at VinaCapital.
The investment fund VinaCapital expects Vietnam’s GDP growth to rebound to 6.5% next year, driven by a recovery in exports, which will in turn be closely accompanied by a rebound in the local manufacturing sector output.
Vietnam has yet to lose its advantage as an attractive destination for foreign investment flows, although in the short term, investors are taking a careful consideration before making their decision, according to Lecturer Nguyen Xuan Thanh from the Fulbright School of Public Policy and Management.
With the Government’s initiatives to address disappointing GDP growth in the first quarter and the fact that foreign companies’ orders are likely to increase in the second half of the year, the economy is expected to rebound then, Michael Kokalari, chief economist at investment fund VinaCapital, has said.
Last week, the State Bank of Vietnam decided to put Saigon Joint Stock Commercial Bank (SCB) under special control and revamped the bank’s management to help the bank stabilize its operation, but analysts said the recent problem at SCB does not have any potential consequences on the banking system.
High-tech foreign investments will continue to propel Vietnam’s economic growth for years to come, Michael Kokalari, chief economist at investment fund VinaCapital, has said.
