Stock, gold, land, bitcoin: which investment to choose this year?

In the first trading session of 2022, Vietnam's stock market reached a historic peak of 1,517.95 points, and trading volume of over 526 million shares, equivalent to more than 16,688 billion VND.

Stock

In the first trading session of 2022, Vietnam's stock market reached a historic peak of 1,517.95 points, and trading volume of over 526 million shares, equivalent to more than 16,688 billion VND.

Unlike real estate, stock investments do not require too much capital, so it attracts a large number of investors. In the context of the Covid-19 pandemic, traditional investment channels become less attractive, and investing in securities has become an attractive channel for individual investors who have idle money.

From the average trading value of 19,000 billion VND/session in January 2021, the liquidity of the stock market increased rapidly and continuously over the months, to reach 40,000 billion VND/session in November. Overall, from the beginning of the year until now, the average transaction value has reached more than 26,564 billion VND/session, up 258% compared to that of 2020.

Thus, the profitability of stocks is higher than that of other investment channels in 2021 thanks to the strong participation of individual investors. Meanwhile, the rate of return of gold is 10% and savings interest rate is 6%.

According to data from StockQ, the Vietnamese stock market entered the top seven markets with the strongest growth last year, behind Abu Dhabi, Argentina, Iceland, Austria and the Czech Republic.

In Asia, the Vietnamese stock market ranked the highest in terms of profitability (+36%), followed by Taiwan (+29%), India (+23%)...

Based on the positive recovery prospect of Vietnam's economy, SSI Research expressed a positive view on the stock market in 2022. VNDriect Securities puts "new hope, new height" on the stock market this year, with VN-Index to reach 1,700-1,750 points.

In the recently released stock market outlook report 2022, SSI Research emphasized that the year of the Tiger 2022 may not be an easy year for the stock market.

Gold

At the end of the trading session on December 31, 2021, the price of 9999 gold was sold by Doji Jewelry Group at 60.85 million VND/tael (buying in) and 61.5 million VND/tael (selling price) in Hanoi and 60.8 million VND/tael (buy in) and 61.4 million VND/tael (selling) in HCM City.

Gold price at SJC listed at 60.95 million VND/tael (buy in) and 61.67 million VND/tael (selling price) in Hanoi. In Ho Chi Minh City, the price of SJC gold listed at 60.95 million VND/tael (buying in) and 61.65 million VND/tael (selling price).

Thus, after one year, profit earned by gold is about 4.5 million VND/tael. In the context of galloping stock and real estate prices, investing in gold is no longer attractive in Vietnam.

Real estate

Vietnamese always prefers to invest in land, but the supply is increasingly limited. The trend of urbanization and moving to the suburbs in the context of the epidemic are also stimulating factors, causing the land price in the suburbs to increase sharply.

In 2021, the real estate market witnessed “land fever” in many provinces from the North to the South. In Hanoi, the land price in the suburban areas such as Hoai Duc, Ha Dong, Ba Vi, and Thach That increased day by day.

In Ho Chi Minh City, the establishment of Thu Duc city contributed to raising the price of housing in this area by 50-70% within just half a year.

However, experts say that real estate is not an easy investment channel. To prevent land speculation, it is highly possible that the Government will take strict solutions.

Virtual money

2021 was a booming year for digital currencies, including Bitcoin. The world's largest digital currency grew by 73%, while the second largest Ethereum increased by 455% in value, although they had to compete with many emerging digital currencies.

The transaction value of the virtual currency market also increased rapidly. At the beginning of this year, the virtual currency market capitalization reached more than 700 billion USD and then rocketed to nearly 3 trillion USD by mid-November 2021 and at nearly 2.4 trillion USD last week.

El Salvador became the first country in the world to recognize Bitcoin as the legal currency. Many venture capital funds poured tens of billions of US dollars into virtual money. It is estimated that these funds are investing 60 billion USD in digital assets.

Although it is an investment channel with the best return of the year, virtual currency is also the riskiest investment channel with unprecedented volatility. Vietnam and many Asian countries have not yet accepted the use of virtual currency for real transactions.

NFT

NFT (Non-fungible Token) is a type of digital asset that uses blockchain technology similar to bitcoin to create a unique chain. In addition to art products, many people have begun to pour money into games using NFT and see this as a profitable investment channel.

The development of NFT games is now on a global scale and some of it is considered "explosive". A good example is the game Axie Infinity. Since its release in 2018 to July 1, 2021, the game only had 21 million USD in revenue. But after becoming famous, in just one month, the game brought in 23 times more money for the parent company, reaching 485 million USD with a total in-game transaction value of more than 2 billion USD, according to CryptoSlam data.

The story of an NFT project called Evolved Apes when the developer ran away with money is a lesson that FOMO (fear of missing out) investors should participate in an overheated developing market.

In order to limit this situation, experts say that the core factor is still on the investor's side, who needs to be wise, learn carefully about the project, the development team, the participating funds...

Duy Anh