Chủ đề: foreign investors

Vietnam Economic Times July 2023

At a roundtable discussion with CEOs of some leading corporations and investment funds listed on the New York Stock Exchange (NYSE) on May 16, Prime Minister Pham Minh Chinh, who is paying an official working visit to the US, affirmed that Vietnam welcomes foreign investors in emerging industries and that the government has been introducing many measures to create a favorable and competitive business and investment environment.

In line with not-overly-optimistic forecasts regarding foreign transactions on Vietnam’s stock market in 2022, foreign investors continued to strongly net sell in January, to the tune of 218 million shares worth VND3.4 trillion ($150.19 million). Foreign investors net sold more than VND60 trillion ($2.65 billion) in 2021 as a whole, after starting to net sell in 2020 when Covid-19 broke out.

According to the KB Securities Vietnam Joint Stock Company (KBSV), it is unlikely that foreign investors will be net buyers again in 2022 as some net selling factors are in place, especially in the context of developed countries gradually tightening monetary policy under inflationary pressure.

FDI attraction in northern Vinh Phuc province for 2021 as a whole is expected to stand at more than 250 per cent of the plan and increase 50 per cent year-on-year. Its growing appeal lies largely in its preferential mechanisms and policies. It plans to expand investment partners next year, especially major investors from the US and the EU.

According to Bloomberg, the competition among stocks favored by foreign individual investors such as Tesla and cryptocurrencies is part of the reason why foreign investors have been net sellers of Vietnamese stocks since the beginning of the year.

The Vietnamese Government is always willing to assist foreign investors seeking to invest in the country’s industrial real estate. With over 394 industrial parks, Vietnam has an abundant supply of industrial land funds compared to other countries in the region. It also actively restructures industrial parks into eco-industrial parks, thus attracting more investors.

Net sales by foreign investors on Vietnam’s stock exchange were 17 times higher in the first nine months of 2021 than in the same period last year; a new record. Experts expect capital flows from foreign investors to fully return in mid-2022.

Rising exports, steady FDI attraction, and stable economic growth all affirm Vietnam’s potential for future development post-pandemic. Foreign investors and experts are also being given priority to enter the country so that foreign businesses can expand their investment.

Foreign investors net bought by some VND4.94 trillion ($215.15 million) on the Ho Chi Minh Stock Exchange (HoSE) during July.