Mr. Pham Xuan Hoe, former Deputy Director of the State Bank of Vietnam (SBV)’s Institute of Banking Strategy, shared with VET his thoughts on cash flow in the first quarter and its effect on economic growth.

After three consecutive months of net entry into Vietnam’s stock market, capital flows from exchange-traded funds (ETFs) and active funds reversed to net withdrawal in July. According to SSI Research, a positive long-term outlook for Vietnamese securities could trigger cash flows from actively disbursing funds. ETF capital flows can also still maintain their attractiveness.

After nearly two years, domestic money flows are returning to their pre-pandemic trajectory. In particular, individual savings into the banking system have increased rapidly, while businesses have gradually withdrawn funds to put into production and business activities. Analysts say that this is the clearest sign yet of economic recovery.

The positive signs in pandemic control and the widespread vaccination campaign in Vietnam have made investors more prepared to invest in its real estate market. According to experts, the country’s real estate sector is still considered one of the two safest investment channels, joining securities.