Four potential fields of investment in 2014
Real estate and construction
Real estate and construction is expecting to benefit from political support including credit growth policies, inflation control, and reliably low interest rates.
The Government is seeking to accelerate the disbursement of a VND30 trillion bailout package, helping to re-balance current market excesses.
The real estate market has shown initial signs of recovery, especially at lower price ranges.
Merger and acquisition capital is always interested in big, economically viable real estate companies.
Real estate and construction stock prices are also attractively modest.
Vietnamese businesses remain targets for many domestic and foreign investors.
The Vietnam Stock Exchange was one of the fastest growing in the world in 2013, and the trend is expected to continue this year.
Foreign investors will broaden their stakes in the securities market. Relaxing foreign investment limits will only encourage this, with wider, indirect ramifications for associated stocks.
Securities company share values are lower than average because of poor performances in previous years.
If the stock exchange’s positive signals stretch into 2014, securities profits will rise significantly.
Pharmaceuticals and consumer products
Pharmaceuticals and consumer products have bucked the downward market trends of recent years.
Foreign investors find their relative efficiency and resource stability very enticing. These businesses will directly benefit from increased investment limits offered to foreign enterprises. Comparatively high share prices make these sectors suitable for long-term investors.
Exports (primarily agricultural products)
Input material costs have loaded most export businesses, and especially agricultural exporters, with big debts. These businesses also suffered from recent international price declines. The companies who successfully overcame these difficulties relied on effective strategy and astute management.