Dr Nguyen Son, Chairman of the Vietnam Securities Depository, speaks at the seminar on the Vietnam’s securities market in 2021 and wise investment choices held in HCM City on April 24. (Photo: VNA)Speakingat a seminar on the market in 2021 and wise investment choices, Dr Le Anh Tu,senior advisor at PwC and deputy chairman of the Economists Club, said the techsector has always attracted interest, and achieved CAGR of 26.1 percent in2015-2019.
Heexpected the figure to be even higher in the coming years.
Theeducation sector is expected to attract investors since spending on educationwould continue to increase, especially by the middle class, he said.
Investmentin the sector would also increase thanks to the Government’s policy ofencouraging 100 percent investment by individuals, including foreign.
Thehealthcare sector would remain attractive since per capita healthcare spending isexpected to increase from 194 USD in 2019 to 309 USD in 2024 and the ageingpopulation is increasing rapidly, he said.
Accordingto experts at the seminar, there are many fundamental factors backing thedevelopment of Vietnam’s stock market.
Theeconomy is likely to grow at 6.8‐7 percent in 2021, FDI investment has boosted the servicessector and the competent curtailment of the Covid-19 epidemic has created amomentum for many sectors to boost exports, said Dr Nguyen Son, Chairman of theVietnam Securities Depository.
“Theprice to earnings (P/E) ratio is still low compared to other countries in theregion, meaning there is still much potential for it to increase further.”
Thereis a possibility of foreign capital flows shifting from other markets to Vietnamwhen its stock market is upgraded as an emerging market, Son said. It currentlymeets seven out of nine requirements set by FTSE Russell for the upgrade.
Thenew securities law has also helped promote the stock market, he said.
Tofurther boost its development, there would be a focus on strengtheningregulations and stock exchanges’ IT systems, improving the capacity offinancial intermediaries, developing new products such as pension funds,non-voting depositary receipts and depositary receipts, and creating a marketfor start-ups’ products, he said.
Atthe seminar, held by the Economists Club, the Ho Chi Minh SecuritiesCorporation and Green Plus Joint Stock Corporation, experts also talked aboutmethods to classify and choose stocks for investment.
Alsoat the event, Nguyen Truc Son, Vice Chairman of the Ben Tre Provincial People’sCommittee granted investment registration certificate to GreenPlus for developing a 1 million-USD functional food plant in theprovince’s Giao Long Industrial Park./.
VNA
