Foreign investors net bought US$2.8 billion in 2018, 2.3 times the figure in 2017. It was also a new record high for the Vietnamese equity market since 2008. - Photo vietnambiz.vnViet Nam News HÀ NỘI – The net value of foreign capital flowing into Việt Nam’s equity market in 2018 hit US$2.8 billion, according to State Securities Commission vice chairman Phạm Hồng Sơn. That figure was almost 2.3 times the figure of $1.23 billion in 2017 and set up a new record high of net foreign purchases since 2008, Sơn said at a meeting on Wednesday, adding foreign capital had started to leave other Southeast Asia markets. The total value of foreign investment in Việt Nam as of the end of 2018 was estimated at $32.8 billion. In 2018, the global economy saw strong growth amid worries about uncertain geo-political conditions, the US Fed’s rate hikes and trade tensions between the biggest economies. Those worries were reflected in … [Read more...] about 2018 a banner year for local equity market
Asia equity markets
Việt Nam’s poor governance a danger to equity market
Viet Nam News HÀ NỘI - Việt Nam's low ranking in corporate governance could scare off investors in the stock market, says Phan Đức Hiếu, deputy chairman of the Central Institute for Economic Management (CIEM). Hiếu made the remarks at a gathering on Monday in the capital city with more than 300 local and international participants at a conference held by International Finance Corporation (IFC), a member of the World Bank Group, and Deloitte Việt Nam, in partnership with the Hà Nội and HCM Stock Exchanges to help local listed companies adopt international best practices in corporate governance to boost their appeal to foreign investors and spur growth. Hiếu said under the World Bank's ASEAN corporate governance scorecard, Việt Nam ranked the lowest among six regional countries of Indonesia, Malaysia, the Philippines, Singapore and Thailand between 2012 and 2014. Thailand had the highest score of 84.53 per cent while Việt Nam was placed lowest with 35.14 per cent, said Hiếu, … [Read more...] about Việt Nam’s poor governance a danger to equity market
Equity market waiting for clear signals
by Thuy Anh Fund management firm VinaCapital is setting up a new fund to invest in the real estate sector. It already has a real estate fund called VinaLand but the new fund will be different - it will mainly target institutional investors, not list on stock markets, and not invest in listed securities. "Viet Nam's economy will grow in a stable manner this year and we hope for new co-operation ties in different areas," Don Lam, VinaCapital's general director, says, adding Viet Nam is still attracting foreign investors' interest. Other fund management companies are also preparing to set up new funds. IDG Ventures Viet Nam expects to manage a new fund of up to US$200 million this year to tap the opportunities in the education and medical services sectors apart from its traditional areas of interest - information technology and telecom. Sai Gon Asset Management hopes to raise $100 million from institutions and industry leaders in the US or Luxembourg for its "Smart Money". The fund will … [Read more...] about Equity market waiting for clear signals
Equity market: who dares wins
To date, most regional indices have strongly recovered and returned to the heights of 2007-2008 before the global financial crisis struck. In 2010, as forecasted by reputed global research houses, the Asia-Pacific region and other emerging markets have recorded impressive growths. Except for Japan which has faced deflation risks for years, only Vietnam and China have been left behind. Compared to Korea, Singapore, Indonesia, Taiwan and Hong Kong, the VN-Index has suffered a 30-40 per cent pull-back. Depending upon the methodology and sources of information, the price-to-earnings (P/E) ratio of Vietnam's equity market is estimated at the range of 10x-15x, which is not much lower than the others. However, there are a number of unique characteristics that have distorted the calculations. Some 5 per cent of the biggest companies by market capitalisation such as VCB, BVH, CTG, HAG and VI normally carry high P/E valuations compared to averages. Together, they account for … [Read more...] about Equity market: who dares wins
BIDV delays debut on Vietnam market slump
A man pedals past the Ho Chi Minh Stock Exchange in Ho Chi Minh City Bank for Investment and Development of Vietnam, the country’s second-largest lender, said it will delay a planned trading debut until the third quarter after a slide in the benchmark VN-Index. BIDV, as the lender is known, sold a 3 percent stake in an initial public offering in December and had planned to begin trading on the Ho Chi Minh Stock Exchange on June 26. The stock will debut by September 30, BIDV Deputy General Director Pham Quang Tung said in an interview June 19. Vietnam allows companies to delay listings for as long as a year after IPOs. “Stock-market conditions are still not very favorable, so listing at this time may negatively affect the stock value as well as hurt shareholders and investors,” Tung said. “We expect the trend in the market will be clearer in the third quarter, and will recover well in the second half.” Vietnam’s VN-Index has lost 12 percent from … [Read more...] about BIDV delays debut on Vietnam market slump