|
Stocks the choice for short-term, properties long-term investments
Experts talk about the profitability of investments in gold, real estate and securities in the last few months.
Le Xuan Nghia, Director of the Banking Development Strategy under the State Bank of Vietnam: Stocks prove to be a good choice, but…
Macroeconomic factors are effectively supporting the stock market’s recovery. However, investors should not put too high hopes on the bounce back of the stock market in the short term. The national economy is better off, but the government’s measures need more time to be effective. Difficulties will still exist for some more months, i.e. the purchasing power of consumer and electronics products have been decreasing sharply, while the real estate market has not recovered yet. The difficulties will not decrease for another 5-6 months.
Associate Prof, Dr Tran Hoang Ngan from HCM City Economics University: Risks for dollar, gold holders
Eight months after experiencing fluctuations, the gold price returned to the starting point. Those who purchased gold when the price was at its highest peak have lost money. Those who purchased dollars before also have incurred losses as the dollar price has dropped by VND3,000/US$1 from the highest peak. It is not advisable to purchase gold at this moment, as the domestic price is much higher than the world’s price level.
It is unprofitable to keep dollars as the dollar supply will be profuse, to be sourced from overseas remittance, foreign direct investment and official development assistance, which is expected to be able to offset the trade deficit of $20bil.
The dollar price will remain stable at below VND17,000/US$1, therefore, it is not profitable to keep dollars in the long term.
Tran Phuong Binh, General Director of East Asia Bank: Keep VND to be safe from risks
The CPI increased by 1.13% only in July, while a higher increase has been anticipated for August, but it will not be overly high as the petrol price has been slashed.
Deposit interest rates are forecast to go down in the time to come, therefore, it would be more profitable to make long-term deposits now and enjoy the interest rate of 1.5% per month (18% per annum).
The stock market has recovered, and proves to be an attractive investment channel, but it is not for all people.
Dang Van Thanh, Chairman of Sacombank
There are three groups to inject money in, in order of priority: bank deposits and securities; real estate projects which have medium prices; and gold and dollars.
Making deposits proves to be the safe investment, while securities can bring high profit in the long term. The stock market’s difficult period is over, while many share items have attractive prices. Deposit interest rates, though decreasing, are still high.
As for medium-price real estate projects, though the market is freezing, the demand for accommodations, offices and workshop premises remains very high.
Injecting money in gold and dollars may bring risks as the market happenings do not support gold price increases, while the exchange rate are tending to decrease.
Dinh The Hien, MA, finance investment expert: Buy now and wait till the end of the year
As for those who have profuse capital and well understand the real estate market, it is now the right time for investment.
However, it is expected that the real estate market will not recover until the end of 2009, when the national economy is more stable. Therefore, investors should prepare for long-term investments and thoroughly consider investment deals, especially when banks are still tightening real estate credit.
The stock market is also where investors can seek short-term investments. Macroeconomic factors are supporting the market.
VNN
|
