The economists and securities analysts attending the workshop on investment strategy in mid-May all agreed that the stock market will continue rising in upcoming years.

Duong Van Chung from MBS Securities predicted that Vietnam’s GDP would grow by 6.35 percent this year, while the inflation rate would be at 5 percent and the bank credit by 18 percent.

“I believe that the next growth cycle will last four years,” he said.

Analysts believe that the stock market is still the most effective investment channel this year, though the yield will be lower than in the golden days in the past.

Chung believes that injecting money into securities would be one of the best choices for the upcoming years. 

However, he said that profitability would not be as high as in previous years, just at 30-40 percent, and not all investors can make profit.

Nguyen Phi Son from SHS Securities, said the 10-year circle of the stock market has come back since 2016.

Despite some negative information about the banking system, the stock market is still strong, partially thanks to government action.

Ngo Thanh Hai, chair of FPT Capital, also said the government’s reforms have made it easier to trade debts.

“Securities are the investment channel which can bring higher yields. Why don’t we think of investing in securities?” Hai said.

Trinh Van Quyet, the richest stock billionaire, said he has advised his friends to invest in stocks.

When asked about the potential of the real estate market, Quyet said it has great potential, but securities will be the top priority

Where to inject money?

Chung said that with the legalization of derivatives and the upgrading of the stock market from frontier to emerging in the near future, investment opportunities will be great.

He said the cash has been flowing into steel, oil & gas and banking shares. Meanwhile, the time of bank shares would active in one year. Businesses which successfully restructure also promise fat profits for investors. 

Foreign funds

The attractiveness of the stock market can also be seen in the comeback of foreign capital flow.

According to Tong Minh Tuan from VCB Securities, foreign capital is flowing to Vietnam because of the stable interest rate. The high interest rate is considered the ‘enemy’ of securities.

He said foreign funds are enthusiastic, especially about SOE equitization. However, they still are concerned about the transparency of the equitization process and the fear that changes in policies will affect them.