What to invest in this year?

With uncertainties caused by COVID-19 persisting, gold, stock, and real estate are still promising investments for Vietnamese investors in 2021.

Gold is expected to rise back to over $2,000/ounce levels in 2021. 

Gold is still a safe heaven

The price of gold in international markets has been on a downward trend since the second half of last year as many investors have turned to the US dollar as a new safe haven and COVID-19 vaccines are developed and manufactured.

However, the gold price is expected to bounce back to US$2,000/ounce in 2021, so the precious metal is still a good investment for idle money.

The successful trials of COVID-19 vaccines have taken away some of gold’s appeal, but the rapid spread of new variants of coronavirus, which have been found in Viet Nam recently, and prospects of more stimulus packages from central banks and governments to kick-start economies after the health crisis will support the precious metal.

“The prospect of more stimulus packages after US President Joe Biden took over the White House will boost gold in the near future,” said Phan Dung Khanh, Head of Investment Advisory at Maybank Kim Eng.

“So investors can take advantage when the gold price is in low territory to invest. However, gold is just suitable for long-term investors and they need to invest when the difference between local and international gold price is low."

Right after the inauguration, US President Biden proposed a US$1.9 trillion stimulus package. Gold is usually considered a hedge against rising inflation and currency debasement that can result from massive stimulus.

Last year, the gold price fluctuated a lot in both local and international markets.

In international markets, gold hit over $2,000/ounce for the first time in history in August as the US dollar receded, then plunged after that.

Meanwhile, in the local market, the gold price surged in the second half of 2020 and even peaked at a historic level of over VND62 million/tael from around VND42 million/tael at the beginning of 2020.

Stocks an attractive investment

The expert from Maybank Kim Eng expects the market’s positive level to fall in 2021 despite impressive economic growth last year.

“Even when the economy recovers well, if new investors and individual investors still dominate the market while lacking other large cash inflows from foreign investors and organisations, the the market will struggle to cross new peaks,” Khanh said.

However, he believed that “stocks remain an attractive investment in the near future but couldn’t beat that of 2020,” and investors have to choose sectors that attract capital.

The market strongly fluctuated since the beginning of the new year. It continued last year’s rally in the first half of January with many analysts expecting the market could hit its historic peak of over 1,200 points.

But it witnessed corrections in the next sessions due to selling pressure for profit booking. Especially, the VN-Index posted its biggest daily loss in history at the end of last month after new COVID-19 community cases were reported. And it recovered again.

 

However, analysts are still optimistic about the market and expect it will recover in the short-term.

Stocks have become more popular as an investment channel during the pandemic as transactions can easily be done via phone calls or mobile applications.

The market’s benchmark VN-Index rose nearly 15 per cent last year despite a deep fall at the end of March.

Real estate still has room for development

With economic recovery, real estate is also a promising investment in 2021.

Prof. Dr. Dang Hung Vo, Former Deputy Minister of Natural Resources – Environment, said that Viet Nam’s real estate including agricultural, industrial, resort and housing segments, has huge potential. In the housing market, our urbanisation rate just reached 38 per cent which means to become an industrial country the level of urbanisation must be around 70 – 80 per cent.

“Therefore the potential growth for housing and urban development is really high,” said Vo.

The shift in foreign investments from China will lead a huge amount of cash flow to Viet Nam's market and support the industrial segment.

However, the downside of Viet Nam’s real estate industry is that the law on land and real estate is not strong enough and too complicated for businesses and foreign investors.

“Our potential is really huge but our law on land and real estate is not consistent. And the law on land, which is its foundation, has not yet been fixed, leading to a reduction in housing demand,” said Vo.

In 2019 and 2020, the number of projects receiving approval fell ten times, which meant that in the next 3 – 5 years, housing supply will decline significantly, he added.

“Viet Nam has more real estate investment opportunities than other more mature Asia-Pacific markets, although certain difficulties remain,” Matthew Powell, Director of Savills Ha Noi, said in a statement.

“The standout prospects are in industrial, logistics, and Grade A offices in Ha Noi and HCM City. For individual investors, real estate remains a favourite investment channel for its mid-term capital growth potential.”

Some domestic developers might focus mainly on residential real estate, while other more specialist investors like industrial and logistics sector from apartment or resort development. — VNS

Silver lining found in investment channel risk this year

Silver lining found in investment channel risk this year

Investors are pinning their hopes on different investment channels this year despite the many difficulties and risks brought about by COVID-19, analysts have said.

Chinese newspaper lauds Vietnam’s investment attractiveness

Chinese newspaper lauds Vietnam’s investment attractiveness

China’s Newsweek ran an article recently highlighting the positive outlook for Vietnam’s economy.

 
 

Other News

.
Ministries tighten land management to prevent 'land fever'
Ministries tighten land management to prevent 'land fever'
BUSINESSicon  04/04/2021 

The Ministry of Construction (MoC) and the Ministry of Natural Resources and Environment (MONRE) have requested provinces and cities review State management on land prices amid 'land fever' in some localities.

New trading system in place this year: HoSE
New trading system in place this year: HoSE
BUSINESSicon  04/04/2021 

The new information technology system for the entire stock market, known as KRX, is expected to be put into operation this year, according to the Ho Chi Minh Stock Exchange (HoSE).

Stock market size on HOSE reaches nearly 71 percent of GDP
Stock market size on HOSE reaches nearly 71 percent of GDP
BUSINESSicon  04/04/2021 

Vietnam’s stock market capitalisation on Ho Chi Minh Stock Exchange (HOSE) as of March 31 skyrocketed 93.56 percent year-on-year to more than 4.46 quadrillion VND (193.72 billion USD), HOSE said.

Retail industry strives to exploit US$200-billion market
Retail industry strives to exploit US$200-billion market
BUSINESSicon  03/04/2021 

The Vietnamese market had a spectacular leap in scale last year, becoming one of the 16 most successful emerging economies in the world. In which, the retail sector was extremely attractive and full of potentials, with lots of room for development.

Markets blacklisted for selling counterfeit goods
Markets blacklisted for selling counterfeit goods
BUSINESSicon  03/04/2021 

The US Trade Representative (USTR) office has blacklisted Vietnam's well-known markets in its 2020 review, for reasons of counterfeiting goods. Dong Xuan Market in Hanoi and Ben Thanh Market in HCMC have been named on the USTR blacklist. 

Steadying the economic ship
Steadying the economic ship
BUSINESSicon  04/04/2021 

Despite numerous challenges making dents in all trade and investment activities, Vietnam’s economic growth quality has seen significant improvements over the past five years in general,

Car dealers begin clearance sales, reduce prices by up to VND100 million
Car dealers begin clearance sales, reduce prices by up to VND100 million
BUSINESSicon  03/04/2021 

Car sale agents have launched promotion programs in an effort to clear stock, but the price reductions are lower than those in the same period last year.

Mekong Delta: spoiled pigs eating sweets, and other unusual phenomena
Mekong Delta: spoiled pigs eating sweets, and other unusual phenomena
BUSINESSicon  03/04/2021 

Nguyen Hong Trang’s family in Vinh My A commune in Bac Lieu province raises pigs. More than a year ago, her sow gave birth to 11 baby pigs, one of which weighed only two kilos. As it could not suckle much, it stayed small.

Bank shares in demand as banks report huge profits
Bank shares in demand as banks report huge profits
BUSINESSicon  03/04/2021 

The capitalization value of some banks has increased by one billion dollars within a short time.

Local authorities struggle to stop real estate bubble
Local authorities struggle to stop real estate bubble
FEATUREicon  03/04/2021 

The real estate market remains feverish not because of high demand and short supply, but because of speculation, experts have said.

Will Vietnam compete with Thailand, Indonesia to manufacture electric cars?
Will Vietnam compete with Thailand, Indonesia to manufacture electric cars?
FEATUREicon  04/04/2021 

In Southeast Asia, Thailand and Indonesia are running a race to become electric car manufacturing centers of the region and the world. Will Vietnam join the race?

Demand for industrial land rising: Savills Vietnam
Demand for industrial land rising: Savills Vietnam
BUSINESSicon  02/04/2021 

The sudden increase in demand for land, factories, and warehouses in Vietnam has pushed up rental costs at industrial parks (IPs) near major cities, according to Savills Vietnam.

Finance ministry studies legal framework for cryptocurrencies
Finance ministry studies legal framework for cryptocurrencies
BUSINESSicon  02/04/2021 

The Ministry of Finance is studying the legal framework for managing cryptocurrencies on stock exchanges which would pave the way for legal cryptocurrency transactions in Vietnam.

Vietnam’s airlines preparing to fly non-stop to US, resume international flights
Vietnam’s airlines preparing to fly non-stop to US, resume international flights
BUSINESSicon  02/04/2021 

Despite the Covid-19 crisis, Bamboo Airways and Vietnam Airlines have announced plans to fly non-stop to the US by the end of this year.

Plenty of room remains for growth of consumer credit market: Insiders
Plenty of room remains for growth of consumer credit market: Insiders
BUSINESSicon  01/04/2021 

Though Vietnam’s outstanding consumer credit almost tripled over the last decade, its share of total outstanding loans is yet to keep pace with that of its regional nations. 

Owner of US$7 billion system, billionaire Nguyen Dang Quang takes new step
Owner of US$7 billion system, billionaire Nguyen Dang Quang takes new step
BUSINESSicon  01/04/2021 

After Masan Group's acquisition of Vingroup’s retail chain, Masan’s Nguyen Dang Quang took great steps to master the $7 billion system and form an ecosystem for Vietnamese people.

Banks required to issue chip cards for security
Banks required to issue chip cards for security
BUSINESSicon  01/04/2021 

Vietnamese commercial banks are required to issue chip ATM cards to improve customers’ transaction security from March 31, according to the State Bank of Vietnam’s Circular No. 22/2020/TT-NHNN.

VIETNAM BUSINESS NEWS APRIL 3
VIETNAM BUSINESS NEWS APRIL 3
BUSINESSicon  03/04/2021 

Fitch Ratings upgrades Vietnam’s outlook to “positive”

Industries bet on vaccine visa measures
Industries bet on vaccine visa measures
BUSINESSicon  01/04/2021 

In line with the global vaccine visa drive, Vietnam’s latest move to complete technical infrastructure for the availability of such a travel document in April is expected to revive industries, heralding strong economic recovery ahead.

Big businesses pour billions of dong into land purchases in Da Nang
Big businesses pour billions of dong into land purchases in Da Nang
FEATUREicon  01/04/2021 

While other land markets are hot, Da Nang remains very quiet, prompting many investors from Hanoi and HCM City to collect land plots in advantageous positions in "bottom fishing" deals.

 
 
 
Leave your comment on an article

OR QUICK LOGIN