Stock market benefits from strong domestic growth
The positive trading value and volume by foreign investors over the past month have helped to maintain the recovery of the domestic stock market.
Experts said the unexpected strong growth of the Vietnamese market is one of the factors luring foreign investors.
Statistics show that foreign investors net bought more than VND4.18 trillion on the Ho Chi Minh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX) over the past month.
Head of Analysis Division of VNDIRECT Securities Company Tran Khanh Hien said under the management of the State Bank of Vietnam (SBV), Vietnam’s inflation stands at an “acceptable” rate.
The strength of the Vietnamese dong in the context of soaring US dollar has also helped to raise foreign investors’ confidence in the Vietnamese market, she continued.
Michael Kokalari, chief economist at VinaCapital, held that domestic consumption will be the main driver of the Vietnamese economy, adding that in the first half of this year, retail sales adjusted for inflation grew by 7.9%, and surged to 11.9% in the first seven months, far above the 7% growth his company had previously forecast.
Earlier this year, the Asia Plus Securities (ASPS) of Thailand has recommended increasing investment in Vietnam, citing the country’s high growth prospects based on its ample local workforce, low minimum wage and steadily rising per capita income.
ASPS said Vietnam’s GDP growth is forecast at 5-7% annually until 2028, surpassing both Thailand and Singapore.
At the end of the session last week, foreign investors net purchased VND615.71 billion on HoSE and HNX, with shares of SSI Securities Corporation sold most (25.4 million shares).
