“The market is tragic. I sold everything to preserve the last dong,” an investor wrote on an investors’ forum.

Even the most patient investors have sold shares despite the good prospects for Vietnam’s economy.

“Everything is good, from gross domestic product (GDP) and foreign direct investment (FDI) to inflation. Vietnam’s GDP growth rate is among the highest in the world. Only the stock market is sliding,” Trung Hung, an investor on the SSI (Saigon Securities Incorporated) trading floor, said.

The stock market witnessed a tough trading session on September 28 when the VN Index lost 23 points and broke through the support threshold of 1,150 points, the bottom of a sharp fall beginning in early July.

Earlier, many investors were confident about the important support threshold, because the VN Index dropped in one go from the historic peak of 1,520 points in early April to 1,150 points and then bounced back.

Investors believed in the recovery of the stock market as Vietnam is among the most prominent economies, though the world is shaking because of high inflation, energy and food crises. 

Vietnam continues to be the destination of international capital flow with the presence of leading groups such as Apple, Intel and Samsung. 

FDI capital flow into Vietnam has increased despite the US-China trade war, Covid-19 and Russia-Ukraine conflict.

As such, international institutions predicted a 6.5-8.5 percent growth rate for Vietnam in 2022.

In an article in the Financial Times, Rockefeller International’s President commented that Vietnam is among the "seven economic wonders" amid global inflation.

Nevertheless, despite the good news, the stock market is still witnessing a decline which is as sharp as other markets including the US and Europe.

From the peak of 1,520 points, the VN Index has fallen by 25 percent, officially  a bear market.

The market liquidity also dropped to VND10-13 trillion each trading session instead of VND26.3 trillion in 2021.

The stock price fall has caused a loss of $22 billion of market capitalization value since the beginning of September, and $80 billion since the peak in early April.

Billionaire Pham Nhat Vuong, president of Vingroup (VIC), saw his asset value decrease by $4.2 billion after the VIC price dropped from VND102,000 to $57,500 per share.

The stock assets of Tran Dinh Long, president of Hoa Phat Group, decreased by $900 million, after HPG share prices dropped from VND34,800 to 21,800 per share.

Manh Ha