While most Southeast Asian stock markets are emerging on the globalfinancial map, the Vietnam stock market skyrocketed in 2013 with agrowth rate of over 20 percent. Vietnam Net online newspaper reports.
The growth of Vietnam's stock in 2013 was over 20percent, while that of other Southeast Asian countries declined orincreased only 3-10 percent.
At the end of 2013, theVN-Index grew by 20 percent and currently takes the lead in SoutheastAsia. Placed behind the VN-Index is the EMAS Index of Malaysia with anincrease of 11.44 percent. At the same time, the stock markets ofThailand, the Philippines, Indonesia and Cambodia witnessed a decline.
Most of the stock markets in Southeast Asia areclassified as emerging on the global financial map. However, foreigninvestment flows into these markets in 2013 was uneven.
According to Bloomberg, in December alone, Vietnam's stock market tookthe lead in net purchases of foreign investors with more than 50million USD. Meanwhile, the Thai market had 1.3 billion USD in netsales.
For the whole 2013, foreign capital flowsinto Vietnam's stock market reached a net value of over 250 million USD,second in Southeast Asia. The Thai market had the highest net salevalue of more than 6 billion USD.
The politicalunrest in Thailand or the risk of devaluation of local currencies in thePhilippines, Malaysia and Indonesia affected the growth of the stockmarkets of these countries. Meanwhile, the macroeconomic situation ofVietnam is gradually stabilising, the value of the local currency ismaintained and low inflation rate are the factors that attract theattention of foreign investors.
In 2013, Vietnamfocused on the implementation of the objectives of macroeconomicstability. Interest rate reduced to 7 percent from 14 percent in 2012.The inflation rate was curbed at 6.04 percent, the lowest in 10 years.
The GDP growth was 5.42 percent, compared to 5.25percent in 2012. The value of the domestic currency of Vietnam wasstable, increasing only 1 percent after 12 months. The policies torestructure the economy are still being carried out such bad debtpurchasing by VAMC, the bailout package of 30 trillion VND for the realestate, the restructuring of the banking system and credit institutions,restructuring of state-owned corporations.
Thestock market benefited from these policies, when the shares of differentsectors rose. Lowering interest rates made the prices of shares of theenergy and steel, petroleum, shipping increase.
Nguyen Viet Duc, Director of Research and Economic Analysis at the SaiGon - Hanoi Investment Fund Management JSC, said 2013 was the mostoptimistic time of the Vietnam stock market in the past 5 years.
He said that in the next two years, the growth potential of Vietnam's stock will become stronger.
International experts also made good reviews about Vietnam market.Strategist Sean Darby of Jeffries told CNBC: “When the fundamentals inIndonesia and Thailand weaken, Vietnam has become a bright spot. Webelieve that this market will continue to lead the region in 2014."-VNA
The growth of Vietnam's stock in 2013 was over 20percent, while that of other Southeast Asian countries declined orincreased only 3-10 percent.
At the end of 2013, theVN-Index grew by 20 percent and currently takes the lead in SoutheastAsia. Placed behind the VN-Index is the EMAS Index of Malaysia with anincrease of 11.44 percent. At the same time, the stock markets ofThailand, the Philippines, Indonesia and Cambodia witnessed a decline.
Most of the stock markets in Southeast Asia areclassified as emerging on the global financial map. However, foreigninvestment flows into these markets in 2013 was uneven.
According to Bloomberg, in December alone, Vietnam's stock market tookthe lead in net purchases of foreign investors with more than 50million USD. Meanwhile, the Thai market had 1.3 billion USD in netsales.
For the whole 2013, foreign capital flowsinto Vietnam's stock market reached a net value of over 250 million USD,second in Southeast Asia. The Thai market had the highest net salevalue of more than 6 billion USD.
The politicalunrest in Thailand or the risk of devaluation of local currencies in thePhilippines, Malaysia and Indonesia affected the growth of the stockmarkets of these countries. Meanwhile, the macroeconomic situation ofVietnam is gradually stabilising, the value of the local currency ismaintained and low inflation rate are the factors that attract theattention of foreign investors.
In 2013, Vietnamfocused on the implementation of the objectives of macroeconomicstability. Interest rate reduced to 7 percent from 14 percent in 2012.The inflation rate was curbed at 6.04 percent, the lowest in 10 years.
The GDP growth was 5.42 percent, compared to 5.25percent in 2012. The value of the domestic currency of Vietnam wasstable, increasing only 1 percent after 12 months. The policies torestructure the economy are still being carried out such bad debtpurchasing by VAMC, the bailout package of 30 trillion VND for the realestate, the restructuring of the banking system and credit institutions,restructuring of state-owned corporations.
Thestock market benefited from these policies, when the shares of differentsectors rose. Lowering interest rates made the prices of shares of theenergy and steel, petroleum, shipping increase.
Nguyen Viet Duc, Director of Research and Economic Analysis at the SaiGon - Hanoi Investment Fund Management JSC, said 2013 was the mostoptimistic time of the Vietnam stock market in the past 5 years.
He said that in the next two years, the growth potential of Vietnam's stock will become stronger.
International experts also made good reviews about Vietnam market.Strategist Sean Darby of Jeffries told CNBC: “When the fundamentals inIndonesia and Thailand weaken, Vietnam has become a bright spot. Webelieve that this market will continue to lead the region in 2014."-VNA
