Foreign investors posted an unexpected net withdrawal in the first session of the new month on September 5. There remain many stocks going against the trend and attracting strong capital inflows, however, such as steel and chemical fertilizer.
On August 9, Minister of Planning and Investment Nguyen Chi Dung, on behalf of the government, asked the National Assembly Standing Committee for comments on three matters, including the addition of more than VND4 trillion ($172 million) from foreign capital and unallocated central budget funds to the medium-term public investment plan in the 2021-2025 period.
Capital flows of exchange-traded funds (ETFs) recorded a net entry of VND172 billion ($7.53 million) in the first quarter of 2022. With changing monetary and fiscal policies and exchange rate stability, analysts expect foreign capital flows to return to Vietnam shortly.
Vietnam’s stock market is booming in both quantity and quality, but foreign investors are forecast to continue to be net sellers in 2022, possibly selling up to $200 million. They could also net buy by $500 million, however, under a scenario of Vietnam’s GDP increasing 6.6 per cent next year.
The Covid-19 pandemic has certainly caused industrial real estate to wobble at times, but with support coming from the government the market holds a great deal of potential. Vietnam is also aiming to increase clean technology and low carbon production, so will establish many eco-industrial parks in the future.
The rapid development of e-commerce has led to greater demand for leasing land, factories, and warehouses. Many foreign investors are therefore spending billions of dollars on investment strategies in Vietnam’s industrial and logistics real estate segment.
