Vietnam securities gain strongest growth in Southeast Asia
Vietnam securities gain strongest growth in Southeast Asia
The growth of Vietnam's stock in 2013 was over 20 percent, while that of other Southeast Asian countries declined or increased only 3-10 percent.
At the end of 2013, the VN-Index grew by 20 percent and currently takes the lead in Southeast Asia. Placed behind the VN-Index is the EMAS Index of Malaysia with an increase of 11.44 percent. At the same time, the stock markets of Thailand, the Philippines, Indonesia and Cambodia witnessed a decline.
Most of the stock markets in Southeast Asia are classified as emerging markets on the global financial map. However, foreign investment flows into these markets in 2013 was uneven.
According to Bloomberg, in December alone, Vietnam's stock market took the lead in net purchases of foreign investors with more than $50 million. Meanwhile, the Thai market had $1.3 billion in net sales and it was $476 for Indonesia.
For the whole 2013, foreign capital flows into Vietnam's stock market reached a net value of over $250 million, second in Southeast Asia. The Thai market had the highest net sale value of more than $6 billion.
The political unrest in Thailand or the risk of devaluation of local currencies in the Philippines, Malaysia and Indonesia affected the growth of the stock markets of these countries. Meanwhile, the macroeconomic situation of Vietnam is gradually stabilizing, the value of the local currency is maintained and low inflation rate are the factors that attract the attention of foreign investors.
In 2013, Vietnam focused on the implementation of the objectives of macroeconomic stability. Interest rate reduced to 7 percent from 14 percent in 2012. The inflation rate was curbed at 6.04 percent, the lowest level in 10 years. The GDP growth was 5.42 percent, compared to 5.25 percent in 2012. The value of the domestic currency of Vietnam was stable, increasing only 1 percent after 12 months. The policies to restructure the economy are still being carried out such bad debt purchasing by VAMC, the bailout package of VND30 trillion for the real estate, the restructuring of the banking system and credit institutions, restructuring of state-owned corporations.
The stock market benefited from these policies, when the shares of different sectors rose. Lowering interest rates made the prices of shares of the energy and steel, petroleum, shipping increase.
Mr. Nguyen Viet Duc - Director of Research and Economic Analysis at the Sai Gon - Hanoi Investment Fund Management JSC said 2013 was the most optimistic time of the Vietnam stock market in the past 5 years.
He said that in the next two years, the growth potential of Vietnam's stock will become stronger.
International experts also made good reviews about Vietnam market. Strategist Sean Darby of Jeffries told CNBC: “When the fundamentals in Indonesia and Thailand weaken, Vietnam has become a bright spot. We believe that this market will continue to lead the region in 2014."
vietnamnet
