Indonesia’s external debt remained under control at healthy levels, apparent from its about 37 percent external debt-to-Gross Domestic Product ratio at the end of February, relatively unchanged from the earlier month and within the average of peer nations, according to a statement from the Bank Indonesia (BI).
The Government should help Vietnamese banks lure capital and experience from prestigious foreign banks so as to help local firms develop sustainably, experts said.
The People’s Committee of Hanoi has set a gross regional domestic product (GRDP) growth of 7.4-7.6 percent and an export growth of 7.5-8 percent for the capital city in 2019.
The net value of foreign capital flowing into Vietnam’s equity market in 2018 hit 2.8 billion USD, according to State Securities Commission Vice Chairman Pham Hong Son.
The total newly-registered, additional foreign capital and foreign investors’ stake purchase reached 30.8 billion USD over the first 11 months of the year, or 93.2 percent from the same period last year, reported the Ministry of Planning and Investment’s Foreign Investment Agency.
Vietnam attracted a total of 30.8 billion USD worth of registered foreign direct investment (FDI) as of November 20, a slight decrease of 6.8 percent year-on-year.
Most investment funds in Vietnam’s equity market have recorded modest gains and were beaten by the growth of the benchmark VN-Index in the past three quarters.
Political clarity and continued economic expansion have bolstered investor sentiment to its highest level in seven months and prompted analysts to forecast the Thai stock market hitting 1,826 points by year’s end.
Success of foreign banks in Vietnam has been fueling the volume of capital poured into the sector, while these banks are changing their operations to grow.
Leading destinations for the flow of foreign direct investment (FDI) such as Ho Chi Minh City, Dong Nai, Binh Duong and Ba Ria-Vung Tau provinces, have been shifting their focus to investment quality after 30 years attracting foreign capital.
Although the direction of foreign capital inflow is becoming increasingly unpredictable due to many external factors, experts said that Vietnam is still an attractive destination for foreign investors.
Encouraging investment in infrastructure in the form of public-private-partnership (PPP) is necessary to tap into domestic and foreign capital sources and technology, said Deputy Minister of Planning and Investment Vu Dai Thang.
Foreign capital inflows to the Indonesian financial market doubled to over 46 trillion IDR (3.54 billion USD) by the end of January, compared to 17 trillion IDR in the same period last year.
Stocks on the national exchanges are expected to rise further in the last week of 2017, boosted by positive macro economic development and foreign traders.
Clear, transparent and efficient policies are needed to encourage more foreign investors to jump into the Vietnamese securities market if it is to reach its considerable potential.
Vietnam’s real estate sector recorded several merger and acquisition deals involving foreign capital in the first six months of 2017, according to Dau Tu (Investment) newspaper.
As of July 20, foreign investors in Vietnam have so far this year registered investment worth nearly 22 billion USD, up 52 percent from the same period last year.
Indexes for 2017 second quarter reflected Vietnam’s increasing dependence on foreign direct investment (FDI), said the Vietnam Institute for Economic and Policy Research (VEPR) in its recent report on the performance of the economy in the quarter.
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