Vietnamese shares are forecast to continue their upward trend this week as profit-taking pressure is cooling down significantly.

Foreign investors net purchased 14.8 million stocks, worth some VND80 billion ($3,42 million) during the week from August 8 – 12, showing that the Vietnamese securities market remained attractive to them.

Minister of Finance Ho Duc Phoc has responded in writing to a NA delegate of Lam Dong province on issues related to the management of capital, stock and bond markets.

Tthe market capitalization of the HoSE in the first seven months of 2022 has evaporated VND1.01 quadrillion ($43.43 billion) compared to the end of 2021.

Tuning in with the upbeat sentiment of the US stock market, the VN-Index also climbed robustly in the trading session on July 28 after the US Federal Reserve decided to raise interest rates for the third consecutive time.

Heavyweight stocks dragged Vietnamese’s blue-chip share indices lower on Tuesday, pressuring the overall stock market amid weakening market sentiment.

The market traded two different ways on Friday with the VN-Index failing to cross the psychological level of 1,200 points, as rising selling pressure outweighed demand for riskier assets.

Indices witnessed mixed performance on Thursday, as the uptrend was cushioned by many large-cap stocks, however, lingering selling pressure capped gains.

During the last seven to eight trading sessions, the VN Index suddenly went down and then up again to bottom at 1,150 points. The Index almost stood still and always looked like it was going to break bottom.

The Vietnamese stock market witnessed a strong correction recently, mainly due to international macroeconomic factors, including global soaring inflation and the US Federal Reverse rate hikes.

Several securities stocks hit the ceiling due to the strong increase in demand and high buying prices after the information that the securities settlement cycle T+2 will be applied in August.

Most of the delisting cases on HoSE and HNX were due to losses fore three consecutive years, the auditor’s refusal to give an opinion, or the financial statements of three consecutive years with qualified options.

The banking industry has been facing many difficulties due to concerns about inflation and increasing bad debts since Circular No.14 ended, especially the Government's actions to closely manage and supervise the capital and real estate markets.

Unprecedented global factors, rising interest rates, and inflation running record highs are hampering investors’ appetite, with those who seek higher yields pondering other novel investment channels.

Foreign investors net bought 1.642 trillion VND (70.33 million USD) worth of shares on the Unlisted Public Company Market (UPCoM) in the first six months of this year.

The stock market is still fluctuating, the VN-Index since 2018 has been around 1,200 points. Vietnam's stock market desperately needs support to be upgraded in the near future, which can attract billions of dollars,

The stock market may recover in the short term but is expected to see a downward trend in the medium term, though Vietnam’s economic growth rate is among the highest in the world. The tight cash flow has had an adverse impact on share prices.

The ministry has been in frequent contact with both MSCI and FTSE Russell to update new information and their requirements to finalize the legal framework or address shortcomings in the market.

Amid the market's downward movement, most investment funds in Vietnam recorded negative performance in the first six months of this year.

According to the new draft, securities will be transferred to investors' accounts within the trading hours of T+2.