The rapid recovery of Vietnam ’s stock market this year is a firm foundation for improvement of investment in other sectors, said the chiefs of VinaCapital, one of the leading asset management and consulting companies in Vietnam .

Addressing the company’s 4th annual meeting, VinaCapital Chairman Horst F. Geicke, said the Vietnamese government has effectively dealt with the adverse impact of the global economic crisis and proved Vietnam ’s strength and future potential by quickly recovering from the crisis.

Meanwhile, Don Lam, the company’s CEO, said the “hot spots” for investment flows next year will be health services, consumer products, financial services, retail malls and residential parks for middle-income people.

Short-term speculation on stocks, high-grade apartments and rental offices will decrease in 2010, he added.

“This is a good time for us to set up a new investment fund for unlisted real estate in order to attract more institutional investors,” Don Lam said. “This is a new trend that allows investors to join and take closer control over their financial activities worldwide,” he said

Tempering his glowing assessment, Don Lam also pointed out that foreign investors are still smarting from impact of the world financial crisis, resulting in a tepid flow of foreign direct investment into Vietnam—down 80 percent so far this year as compared to the same time last year.
The FDI disbursement rate is being maintained at a high level, which proves that the current investors are operating effectively in the market. However, the number of new investors in Vietnam next year will not be high, he anticipated.

Founded in 2003, VinaCapital currently has a total in assets of 1.7 billion USD. It manages three funds, including a multi-sector investment fund called VinaCapital Vietnam Opportunity Fund, a real estate fund named VinaCapital Limited and an infrastructure fund, VinaCapital Infrastructure./.