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Securities investors need to have medium term vision: Minister
The current difficulties of the stock market are just temporary, and investors should keep calm and have medium term vision, said Minister of Finance Vu Van Ninh when talking with the press on the sideline of the National Assembly’s Standing Committee session.
Ninh said that on March 25, the Ministry of Finance submitted to the Government the urgent measures to rescue the stock market, which were approved by the Prime Minister.
“Honestly speaking, I feel that Vietnamese investors are not steady in their investment principles,” Ninh said.
Domestic investors, who do not have enough information, are rushing to sell shares for fear that the prices would decrease further. Meanwhile, foreign investors still keep purchasing, i.e they still highly valuate Vietnam as an investment location. The most important thing is the macroeconomic certainty. I do not say that the national economy is now in very good condition, I have to say that it is facing difficulties, but the difficulties are only in the short term. The economy and the stock market will be better in the medium term. Therefore, investors should keep calm and keep a medium and long term vision.
People said that the State Capital Investment Corporation (SCIC) of which you are the Chairman, has never joined the stock market?
As the Chairman of SCIC, I have decided that SCIC has to join the market. SCIC has not joined the market because of the lack of the clear mechanism for its joining. In one or two days, I will sign a document which provides the temporary mechanism based on which SCIC will join the market more actively. Under the mechanism, SCIC’s share purchases to help recover the stock market will be subjected to independent accounting. If SCIC makes a loss with its purchases, this would be seen as the implementation of the state’s mission.
How will SCIC purchase shares?
Investors should keep medium term vision
It will consider the daily market conditions to make decisions. I cannot say about how much to purchase and which share items to purchase.
Does the Government think of adjusting the targeted goals for economic growth rate and inflation rate?
We have not discussed the adjustment, because any adjustment needs the ratification of the National Assembly.
However, the Government finds it very difficult to reach the goals set by the National Assembly. We have to say honestly that the targets may be unachievable. The Government has to draw up suitable plans to settle the problems of the national economy. I have to say that these problems are also the problems of the global economies, and many countries have to adjust their targeted economic goals.
Deputy Prime Minister Nguyen Sinh Hung once said to the press that if he were the investor, he would buy stocks at this moment. How about you?
A lot of people raised the same question to me, and I advised them to purchase shares at this moment. If I had money, I would buy shares. Investors should analyze the situation and take responsibility for their investment decisions. When the stock price increased, investors made fat profit and they bought houses and cars. At that time, nobody said that they wanted to pay tax to the Government because they made fat profit. Meanwhile, they complain all the time and ask the Government to rescue the market when the prices decrease.
Investors should consider many factors before making investment decisions, including Vietnam’s political certainty and the macroeconomic stability in the medium and long term. Besides, they also have to consider the quality of commodities. If the commodities are good and listed companies have good business performance, their shares will remain valuable.
I think that in the time to come, more high quality commodities will be available on the market as the Government is pushing up the equitization of state owned corporations.
Vietnam remains the attractive investment location which has been attracting many foreign investors. Some countries in the region can attract $1bil worth of FDI a year, while Vietnam could attract $1bil worth of FDI just within the first quarter.
In general, Vietnam’s economy is facing difficulties, but investors can see opportunities in the medium term. Investors should have confidence in the recovery of the stock market.
I have to say that the measures taken by the Government over the last time cannot bring the desired effects overnight, but it will need some more time.
VNN
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