(VOVWORLD) - Last year Vietnam's stock market showed the strongest recovery in Southeast Asia and was one of the world’s 10 best-performing stock markets. At the end of last month, Vietnam's stock market was continuing to grow strongly and is expected to attract more foreign investment.
 (Photo: Vietnam+) |
In the last trading session in April, the Vietnamese stock market saw its 3rd consecutive rise, reaching 1,200 points. This was also the 3rd consecutive month the benchmark VN-Index rose on the HCMC Stock Exchange, with trades totalling nearly 800 million USD.
Economists say a market decline may continue in May but the fall will be soft. The investment flow will resume after the holiday season.
Phan Dung Khanh, Head of the Investment Advisory at Maybank KimEng Securities Company, said the recent rising trend is a signal to investors that in the long term, the market will grow well.
“If the VN-Index can surpass the threshold of 1,200 points and stand firmly at this level for one or 2 weeks, the market trend will be more positive, and the VN-Index will likely rise to a level of 1,250 to 1,300 points. Otherwise, it will resume its downward trend, at least in the short term,” said Khanh.
Vietnam’s stock market is expected to grow because Vietnam’s economy is thought to have a better chance of recovery than many others.
Vietnam's participation in bilateral and multilateral trade agreements will help it recover quickly, with possible benefits from the current shift of global supply chains to countries with low production costs.
According to financial reports for the fourth quarter last year, 82% of enterprises gained a profit, with liquidity reaching almost 790 million USD.
A private investor named Tuan in District 1, Ho Chi Minh City, said this is the time for investors to make a long-term investment in the stock market.
Tuan told VOV, “I think 2021 will offer a great opportunity for small investors because the VN-Index will break through the 1,200 point threshold set in March. We are receiving positive news from the world stock market. For example, the US Federal Reserve (FED) continues to pledge to loosen monetary policies. Japan, Thailand, and Vietnam will follow suit in the near future."
In March, Moody's Investors Service changed the Government of Vietnam's long-term issuer and senior unsecured rating to Ba3 and changed the outlook from negative to positive.
Moody's decision recognized Vietnam’s impressive economic growth, far exceeding that of countries with similar credit ratings. Economic growth prospect in the medium term sends a strong positive signal to Vietnam's stock market and domestic and foreign investors.
 Truong Hien Phuong, Director of the KIS Vietnam Securities Corporation branch in HCMC (Photo: VOV) |
Truong Hien Phuong, Director of the KIS Vietnam Securities Corporation branch in HCMC, said, “Based on technical analysis, signals show that the stock market’s upward trend will be quite long and strong.”
Vietnam’s stock market is entering a new cycle of growth thanks to positive signs in the world market and several supportive factors in the domestic market. This will be a good channel for Vietnamese businesses to mobilize more resources to further grow in 2021.