|
Bonds called safe harbour in storm
Viet Nam's bonds will offer a relatively safe channel for investment this year because of lower bank interest rates and the irregular fluctuations of the securities and gold markets, according to a fund manager.
Bui Tan Trung of Bao Viet Fund Management Company said the investment channel was suitable for investors with long-term capital.
Trung spoke at yesterday's inauguration of the Viet Nam Fund Management Club, where fund managers also discussed this year's global economy and the impact of the current global crisis on Viet Nam's economy and the stock market.
He also anticipates that short-term bonds will receive more interest and have better liquidity than long-term ones.
However, he said the trade value of bond deals might be smaller than last year due to the weaker participation of foreign investors, who might be frightened away by risks such as foreign exchange rates and better investment opportunities elsewhere.
The lowering of interest rates in the money market will affect the rate of the bond market, according to Trung.
This year VND140 trillion (US$8 billion) in Government bonds are planned for issuance, mostly for terms of two to five years.
Tran Thanh Tan, general director of VietFund Management and the club's president, said the organisation aimed to enhance co-operation between members for development and continue discussions about the impact of the global financial crisis.
"Our members will share experiences in areas including securities trading and investment, fund management and improvement of investors' knowledge about products of fund management firms and investment funds," Tan said.
Contributing ideas on perfecting the legal framework for the growth of the fund market will also be among the club's goals.
Currently the club has 14 members, including VietFund Management (VFM), Viet Capital Asset Management and VinaCapital Fund Management. Additional fund management companies are expected.
VietNamNet, Viet Nam News
|
