A bright economic outlook and strong foreign capital inflows have made Vietnam’s financial market among the five best performing markets in the world (Source: anninhthudo.vn)

Hanoi (VNA) – A bright economic outlook and strong foreign capital inflows have made Vietnam’s financial market among the five best performing markets in the world, a press conference held by the State Securities Commission on August 24.

The benchmark VN-Index has increased 13.8 percent since the beginning of this year. Total market capitalisation reached 1.59 trillion VND (71.3 billion USD), or equivalent to 38 percent of the country’s GDP, higher than the previous ratio of 34 percent of GDP seen last year.

Liquidity has improved with daily trading value touching 6.2 billion VND (278 million USD) on the two exchanges, a year-on-year increase of 25 percent, of which trading in stocks rose 16 percent and trading in bonds climbed 34 percent.

Overseas investors have poured a net value of 772 million USD into the local stock market in August, a rise of 350 percent over the same period of last year, bringing the total value of foreign investment portfolios to 16 billion USD.

Foreign investors have been net buyers here since 2005.

“The VN-Index returned to its March 2008 peak while market capitalisation also reached the highest level in the past six years, the commission’s chairman Vu Bang said.

“Vietnam’s stock market is among the five fastest growing markets in the world and the second best performer in Southeast Asia in the second quarter.”

In a July report, the World Bank revised down its estimate for Vietnam’s GDP growth for this year to 6 percent from the previous 6.2 percent and maintained the country’s positive medium term outlook.

Bang said the new Government has supported enterprises and improved the business environment.

The trade surplus reached 1.8 billion USD in the first seven months of this year. Bank credits have expanded 8.54 percent during the period. Registered foreign direct investment (FDI) has risen 46.9 percent year-on-year, hitting 12.9 billion USD.

Capital raising through the stock market has increased 81 percent during January-July, taking 254.4 trillion VND.

Sales of State holdings in State-owned enterprises have attracted attention with 79 auctions in the first seven months, collecting 7.2 trillion VND for the State Budget.

Vu Bang said the commission was making efforts to promote Vietnam’s stock market from a frontier to an emerging market.-VNA