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Experts at City conference tackle survival in current economic slump
Financial services experts and economists met on Thursday at an investment conference to discuss ways business can generate capital during the current economic slowdown.
The conference on securities, banking and real estate, held by the Business Review and Thien Viet Securities Company, provided an overview of the capital market and offered suggestions on how businesses can prosper and survive in difficult economic times.
Experts agreed that growth in Gross Domestic Product (GDP), balance of payments and earnings would not be as robust in the near future as it has been in previous months.
The strategic counsellor for Thien Viet Security, Spencer White, predicted that economic growth would slow until the end of next year, but said business opportunities were still plentiful in the country.
"The fall in the valuation of the dong doesn’t make Viet Nam cheap relative to many other countries," he said. "This is beginning to generate opportunities for long-term investors and companies alike."
White said the recent increase in petrol prices would lead to a rise in all prices and add to inflationary pressures.
However, White said even though many businesses have complained about the big jump, the sudden increase was preferable to small incremental price rises.
With only one such petrol increase for an extended period, businesses can plan ahead more easily, he said.
"The jump will force companies to stabilise their business plans and output prices rather than seek a steadily increasing rise in prices," he said.
Speakers at the conference said that businesses should spend more time reviewing their corporate governance, which is considered the most important criteria for investment from capital funds and foreign investors’ point of view.
The executive director of Viet Nam Investment Group, David Do, said: "Despite the slowdown, I still see many opportunities. The matter is to select companies that have strong management."
White suggested that businesses should plan for flexible sources of capital and be ready to accommodate investors as the latter would begin making decisions before the country’s economic data improves.
The deputy general director of Dong A Bank also pointed out that opportunities were abundant for accessing capital to build low-income housing.
The investment director of the Prudential Viet Nam Fund, Simon Craig, declined to outline a specific forecast on the recovery of the real estate market but suggested that businesses should carefully consider their investment decisions and strategic partners.
"Your partner is more important than the deal and a partnership needs constant attention," he said.
VNS
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