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Foreign CEOs bullish on Vietnam bourses

Foreign investors remain positive about the prospects for Vietnam’s stock market as the country grows and adopts more open policies, foreign CEOs said in a discussion panel at the ASEAN Business Summit last week.
Foreign CEOs bullish on Vietnam bourses ảnh 1Illustrative image (Source: Internet)
Hanoi (VNA) - Foreigninvestors remain positive about the prospects for Vietnam’s stock market as thecountry grows and adopts more open policies, foreign CEOs said in a discussionpanel at the ASEAN Business Summit last week.

Dominic Scriven, CEO of Dragon Capital, said Vietnam is still a frontiermarket, so there will be many changes and opportunities in the future.

Though international trade slowed down in 2015 and things will probably berough next year because governments have failed to bring the Trans-PacificPartnership agreement (TPP) into effect, the prospect for Vietnam’s exports isgood because the country has advantages over other economies, he said.

Positive economic growth will help Vietnam attract a huge inflow of foreigncapital as it is among the strongest growing economies in Asia and domesticbusinesses have plenty of opportunities in the future, Scriven said.

The outlook was also positive for Vietnamese stocks, which are valued atreasonable price levels and the Government has shown its commitment toimplement strong reform policies for the securities market, he added.

The benchmark VN Index has fallen 50 per cent since its peak of more than 1,170points in March 2007, and it can increase by 10-20 per cent in the next fiveyears, Scriven said.

Kevin Snowball, CEO of investmentfund PXP Vietnam Asset Management, said the Government has done well to helpthe local stock market rise better than other regional markets, although someinvestors still consider the local market a risky proposition.

Vietnam is still an attractivedestination for foreign investors as the country’s economy is on positivegrowth trend and large-cap companies such as dairy producer Vinamilk haveengaged in good corporate governance, he said.

As a foreign investor, Snowball said he expects local companies to become morecreative and improve their governance mechanisms to international standards.

Lifting the domestic stock market from the “frontier” level to “emerging” levelhas been a tough task for the Government, securities-market agencies and marketmembers.

According to the Bao Viet Securities Company, Vietnam needs to improve itsperformance in several aspects to convince international market-watchorganisations to raise the country’s level from frontier to emerging market.

These include lifting limits on foreign ownership in local companies, providingthem with a level playing field, implementation of transaction settlements,development of a derivatives market and better information disclosure.-VNA
VNA

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