|
Vietnam’s stock market to enjoy brighter future
Nguyen Viet Cuong, deputy managing director of Vietnam Opportunity Fund (VinaCapital), discussed with Thanh Nien Daily via email the performance of Vietnam’s stock market and opportunities for investors.
Thanh Nien: As a foreign investment fund, what does VinaCapital think about Vietnam’s current stock market? As an individual investor, not deputy managing director of VinaCapital, do you want to continue to invest in the market or withdraw money from it?
Nguyen Viet Cuong: The Vietnam stock market now is relatively attractive compared to last year, with average PE [price per earnings] of 11x and listed companies still delivering impressive results over the first half of the year.
As fund managers in Vietnam, we remain positive on the medium and long term prospects of Vietnam’s economy and so we think that this is a good opportunity to build up a solid portfolio aimed at medium to long term investments.
As an individual investor, I think the current policies of the government have had a positive impact on the economy and there have been good signs with the macro-economic numbers for June and July.
This should result in a more stable stock market from now to the end of the year, before resuming upward growth in the coming two years.
Again, this is time for serious investors with a long term view to consider injecting more money into the stock market.
The stock market has moved up in recent sessions.
Do you think that the upward trend is stable? Recently, foreign investors have increased stock purchases. Can you explain the reason for this?
As mentioned before, in our opinion, the macro-economic factors have gradually improved following the impact of government policies and the confidence of investors has been built up again.
This will support the market and enable a stabilizing trend in the coming months.
Foreign investors with a long term commitment may have the same thinking about the market and this is why foreign portfolio investment is coming into Vietnam.
The improvement of the economy as well as the positive results of listed companies over the last two quarters means this is a good time to buy, not sell.
What are opportunities for stock investors now and in the near future?
There are now several good opportunities for long term investors.
I think the best bet is with blue chip companies that have a strong competency in their sectors and are able to overcome the difficulties this year and still deliver impressive results over the first six months of the year.
Besides that, the current attractive bond yield rates supported by the stabilization of the Vietnam dong will bring more options for investors now and in the near future.
What do you think about the market’s prospect in the coming time?
As mentioned before, we strongly believe in the prospects of Vietnam’s economy as well as the stock market.
With the ongoing improvement of macro-economic factors and the dynamic growth of local enterprises, we believe the market will swing back to an uptrend in the medium term.
This will bring many good opportunities for investors.
Thanhnien
|
