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Vietnam’s inventory market is anticipated to develop additional this yr because the Authorities has elevated public funding, making a premise for long-term development.
Vietnam’s inventory market is anticipated to develop additional this yr because the Authorities has elevated public funding, making a premise for long-term development.
Given this, funding based mostly on the economic system’s restoration has been opted by many specialists this yr.
HSBC International Analysis has forecast that the VN-Index will attain 1,850 factors in 2022 because the prospects of Vietnam’s inventory market stay constructive this yr in addition to in the long run.
James Estaugh, head of Securities Providers at HSBC Vietnam, highlighted a brand new buying and selling system offered by the Korean Trade, anticipated to be put in place this yr.
“The brand new expertise will probably be able to facilitating vital will increase in buying and selling quantity and resolve system congestion… [at the same time] it is going to additionally present the infrastructure to launch new merchandise similar to intraday buying and selling, sale of receivable shares, and non-voting depository receipts (NVDRs), and many others. which can appeal to new and elevated international funding,” he mentioned.
Michael Kokalari, Chief Economist of VinaCapital, mentioned within the “Wanting Forward at 2022” report that Vietnam’s economic system will profit from constructive elements and restoration in several sectors.
“We anticipate Vietnam’s GDP development to surge from 2.6 p.c in 2021 to 7-7.5 p.c in 2022 and consider that the nation’s financial development may even exceed 7.5 p.c this yr,” he mentioned.
“We anticipate one other excellent yr for Vietnam’s inventory market following the 37 p.c improve in USD phrases (or 35.7 p.c in VND phrases) of the VN-Index (VNI) final yr.”
Based on the chief economist, VinaCapital’s present funding technique stays centered on figuring out shares and sectors that profit from the financial restoration that’s already underway in Vietnam, together with client discretionary, financials, actual property and supplies shares.
As well as, Vietnam’s long-term development drivers have remained intact regardless of the COVID-19, so VinaCapital additionally continues to give attention to shares and sectors which might be beneficiaries of FDI inflows, infrastructure growth, clear power, and digitisation.
“We’re significantly centered on the banking sector (which has a circa 30 p.c weighting within the VN-Index), property (which has a 25 p.c weighting), and client discretionary shares (which have a circa 3 p.c weighting) – however ought to profit from each cyclical and secular tailwinds this yr.”
Banks’ earnings are prone to develop by about 30 p.c this yr, pushed by 14 p.c credit score development, and Vietnam’s banks to be much less impacted by COVID-19 in 2022.
“Subsequent, we anticipate the earnings of actual property corporations to develop by almost 25 p.c in 2022, pushed by a near-doubling of gross sales/pre-sales of recent housing items by property builders following a drop of greater than 50 p.c in 2021.”
He mentioned VinaCapital expects the expansion of actual retail gross sales in Vietnam (i.e., excluding inflation) to surge from a 6.2 p.c drop in 2021 to five p.c development in 2022, versus constant 8-9 p.c annual development pre-COVID.
Truong Hien Phuong, senior director of KIS Securities Vietnam, mentioned such sectors as banking, securities and oil and gasoline will proceed to draw capital this yr.
In the meantime, others like building will profit from the Authorities’s coverage aiming to spice up public funding.
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