Illustrative image (Source: VNA)Hanoi (VNA) - Vietnam’s stock market is likely to recover in the remainingmonths of 2018 thanks to Government plans to develop the private sector and to attractlocal and international investors, experts have said.
According to the State Securities Commission of Vietnam (SSC), thecountry’s stock market has been fluctuating due to global and Asian stockmarkets.
However, foreigninvestors still bought more than 40.53 trillion VND (over 1.74 billion USD)worth of shares from the country’s stock market.
Although the market faces many difficulties, analysts said the Vietnameseeconomy is strong enough to help the market stand steady amid the impact of theexternal environment, and will recover in the second half of 2018.
Thestock market is in a big adjustment phase, but risks are low with the value of cumulativestocks in the market still good, said Le Duc Khanh, chief economist andStrategic Director of PetroVietnam Securities Incorporated.
Marketcapitalisation is still high, and the VN-Index may only fall to 800-850 pointsand should return to the upward trend, he added.
“I am still optimistic about the economic prospects of Vietnam”, Khanhstressed.
Sharing Khanh’s view, Le Ngoc Nam from Tan Viet Securities Joint Stock Company predictedthat the stock market is likely to be more stable in the second half.
He, however, noted it would be difficult for the VN-Index to return to thelevel of 1,200 points this year.
Accordingto SSC Chairman Tran Van Dung, Vietnam still has much potential to attractforeign investment.
Hecited Vietnam’s advantages, including a predicted GDP growth rate of at least6.5 percent in 2018-2020, the Government’s commitment to remove investment barriers,support private sector and accelerate the state capital divestment, initial public offerings ofState-owned enterprises and listing of large businesses.
These factors will help the country’s stock market attract more capital,especially foreign investment, he noted.
Objectively, Vietnam has a comparative advantage over many countries in theregion and the world's stock markets, Dung said.
Vietnam has witnessed increasing investment from Japan, the Republic of Koreaand other countries in the field, and investment from Thailand and Malaysia hasbeen also poured into Vietnam recently, he added.
Concluding the July 11 session, the VN-Index fellmore than 25.83 percent to close at 983.16 points, down 221.17 points comparedto the highest level of 1,204.33 points in the first quarter. -VNA
VNA
