In late November, disbursement of a $600 million credit package with an interest rate of 6.5 percent per year for the Masan Group was completed. This was the biggest ever foreign syndicated loan in the private sector.

Earlier, VIB got a $150 million loan from the International Financial Corporation (IFC). Vingroup, VP Bank and Dat Xanh successfully mobilized hundreds of millions of USD from international bond issuance. 

Meanwhile, HD Bank plans to issue $500 million of convertible bonds to international investors and consult with shareholders on a plan to raise the foreign ownership ratio from 18 to 20 percent.

In the stock market, in November 2022, foreign investors’ net purchase reached a 22-year record high of VND16.9 trillion. 

From December 1-9, net purchase was VND7.651 trillion with capital from Thailand, Taiwan (China) and South Korea.

According to the Fubon ETF, this is a good time to invest in Vietnam’s securities. Fubon has obtained approval for additional capital mobilization for the fourth time, about VND4 trillion, with disbursement slated for December. 

Dragon Capital has increased its ownership ratio of Vinh Hoan shares (VHC), Ha Do (HDG) and FPT Retail (FRT).

Meanwhile, industrial real estate investors are optimistic about the Vietnamese market. In early 2022, GLP established GLP Vietnam Development Partners with a total investment value of $1.1 billion in six logistics center projects totaling 900,000 sqm. 

Mapletree Investments has transferred three logistics projects to Mapletree Logistics Trust with a total value of $95.9 million.

Logos Property Services has cooperated with Manulife Financial to invest over $80 million in a new logistics project of 116,000 sq m in Dong Nai. 

Capital Land Development has signed a memorandum of understanding (MOU) on cooperation in investment with Bac Giang Province in a 400ha urban area – industrial area – logistics project worth $1 billion.

In January-November 2022, FDI (foreign direct investment) committed for Vietnam reached $25.1 billion, while disbursed capital was $19.7 billion. 

The largest FDI projects included LEGO ($1.3 billion), Trinar Solar ($275 million), Autel Robotics ($90 million), Viet Y Steel ($80 million), Libra International Investment Pte ($210 million) and Coca Cola ($135 million). 

Foreign confidence 

Phung Thi Thanh Loan from CBRE Vietnam said that political certainties and rapid economic recovery are the key factors determining Vietnam’s attractiveness to foreign investors.

Experts at HSBC believe that continued foreign capital flow into Vietnam’s businesses shows foreign investors’ strong belief in the country's potential and its resilient recovery in the post-pandemic period.

Christopher J Marriott, CEO of Savills Southeast Asia, noted that Vietnam has a great advantage, which is the capability of making hi-tech products. 

Vietnam’s labor force is high quality, while production and logistics costs are reasonable. Investment costs in Vietnam are reasonable compared with neighboring countries like Singapore and China. 

Investors are seeking alternative markets and Vietnam is doing well in catching up with those trends after the pandemic.

John Campbell from Savills Vietnam said that tax incentives offered by Vietnam to hi-tech firms are the driving force that has encouraged investors like Intel and Jabu to join the Vietnamese market.

According to the Saigon Securities Incorporated (SSI), cash flow is heading for emerging markets, including Vietnam. The USD has been depreciating, and the risk of recession is more visible in developed countries. China has loosened measures to control Covid-19.

Meanwhile, Maybank Securities said the VND is relatively active compared with others. The pressure on the exchange rate has eased with high FDI disbursement and the return of foreign travelers.

Duy Anh - Manh Ha