Investors trace market swings (Photo: VNA) HCM City (VNA) – Vietnam’s stock market is becoming more attractive to many foreign investors, many insiders said at a recent workshop in HCM City.
The benchmark VN Index on the HCM Stock Exchange (HOSE) has increased by almost 15 percent since the beginning of 2016.
Unpredictable changes were seen in the local stock market this year due to both domestic and foreign uncertain factors, including a record FDI inflow, the issue of foreign ownership limit extension, marine pollution caused by Formosa in central provinces, the controversial Ca Na steel project, Sabeco’s listing in HOSE, and Donald Trump’s win in the US presidential election.
Economist Tran Du Lich believed that Vietnam’s stock market will continue developing healthily in the future. If such issues as economic restructuring, bad debt settlement, and debt market facilitation are handled soon, a driving force for the market will be created.
In its latest report released on December 5, the World Bank projects the country’s GDP growth rate at about 6 percent in 2016 and 6.3 percent next year. Vietnam will remain a potential destination for many foreign financial institutions and investors.
Vietnam’s stock market will gain a new “face” in 2017 as many big enterprises are set to list their shares on local stock exchanges, Kim ThienQuang – CEO of Maybank Kim Eng Securities Joint Stock Company – said at the workshop on December 9.
The participation of industries and companies that haven’t yet been listed on stock exchanges will lure investors to the local stock market, he elaborated, taking the Saigon Beer, Alcohol and Beverages Corporation (Sabeco) as an example. The Vietnamese brewing giant listed on HOSE last week and has seen its shares (SAB) continually hitting daily limit since then.
Echoing this view, other insiders said the equitisation of State-owned enterprises (SOEs) or companies with good and stable growth will bring about great opportunities for investors.
They forecast the SOE equitisation will be carried out more strongly and in better conditions in the next two years as this process has been accelerated over the last months of 2016.
Nguyen Thi Viet Ha, a member of HOSE’s board of directors, said the State Securities Commission and relevant agencies, including HOSE, are working hard to implement institutional reforms and align legal framework with international standards so as to develop the stock market. Businesses themselves should also make efforts to improve their operations and corporate governance effectiveness.-VNA
VNA
