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Foreign Investors Optimistic about Vietnam’s Stock Market in the Medium to Long Term

Vietnam’s stock market has caught the attention of foreign investors who remain optimistic about the country’s economic prospects. Despite short-term fluctuations, foreign investment groups are increasingly considering Vietnam’s stock market as an attractive destination for the medium and long term. This positive sentiment is reflected in their rising net stock purchases since the close of September.

A recent report from SSI Securities (SSI) for the month of October highlights the ongoing interest of foreign investors in the Vietnamese stock market. Although exchange-traded funds (ETFs) have seen some net withdrawals, the rate of withdrawal has slowed significantly in the latter part of September.

Additionally, a report from KIS Vietnam Securities Corporation (KIS) for the fourth quarter (October to December) points out that while foreign investors in Vietnam have continued to make net sales, trading activities have normalized and reached the highest level this year.

Foreign investors like Finland-based PYN Elite Fund express their confidence in the Vietnamese stock market. They anticipate a return to an upward trajectory by the year’s end and sustained long-term growth. This optimism is grounded in the relatively low market capitalization and the potential for listed companies in Vietnam to achieve a robust income growth of 25% to 30%.

Andy Ho, the Chief Investment Officer of VinaCapital Group, shares in this positive outlook, forecasting that the Vietnamese economy will maintain a steady annual growth rate of 6% to 7% in the long term. Such growth is expected to create a favorable environment for listed companies, potentially leading to annual profit increases ranging from 15% to 25%.

Foreign investors’ interest and confidence in Vietnam’s stock market underscore the nation’s allure as an investment destination. As Vietnam continues its economic growth trajectory and attracts foreign capital, market participants are keenly observing developments in this dynamic market.

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