return icon

The stock market on track to become one of 'Asia tigers': BSC

The Vietnamese stock market has witnessed drastic changes in both quality and quantity in 2021 and the trend will continue this year, BIDV Securities Company said in a recent report.



Two investors at the trading floor of TVSI Securities Co. — Photo


The firm said that the country's stock market was on track to follow the path of economies that were dubbed "Asian tigers" about 25-30 years ago, including Hong Kong, Singapore, South Korea and Taiwan.

In 2022, the market is likely to maintain the rally trend thanks to the fundamentals of macro factors, businesses, and cash flows, according to the firm. However, after a booming year in many aspects, BSC also became more cautious when international factors were less favourable despite positive local factors supporting the market’s growth.

The securities firm believes that the stable macroeconomic situation and the approval of the economic stimulus package will help the economy regain its growth momentum after controlling the COVID-19 pandemic.

In a positive scenario, the country’s GDP is forecast to grow by 6.6 per cent and 7 per cent in 2022 and 2023, respectively. Hence, listed companies’ profits are expected to strongly improve thanks to the recovery of production and consumption.

Meanwhile, as major countries and regions continue to grow post-pandemic, it creates conditions for domestic production to recover and expand important trade agreements that have been signed.

The market is still attracting strong capital flows from domestic investors and is continuously creating records in market liquidity, BSC report says.

It says that low interest rates will continue in the first half of 2022, while there is less pressure on foreign capital outflows.

On the other hand, the revised Law on Securities that took effect in 2021 is the highest legal document that consolidates market operators. This will be the foundation for launching new products, opening the door to upgrade the market.

However, BSC believes that most of the risks will come from outside such as the neutralisation of monetary policy by some countries and the increase of interest rates, the ability to control the pandemic, and the recovery of the domestic and international economy. Commodity price escalation or the reversal or bear stock markets in developed countries are also likely to negatively affect the Vietnamese stock market.

Based on factors affecting the overall market outlook by using earning per share (EPS) and price to earning ratio (P/E) methods, in a positive scenario, BSC said that the market benchmark VN-Index would reach 1,782 points in 2022 with the assumption that the EPS grew by 16.5 per cent, equivalent to a P/E of 18 times.

Accordingly, the average liquidity of the three exchanges is expected to be over US$1.3 billion per session, an increase of 15 per cent compared to the average in 2021 when the number of new accounts rose by 34 per cent, while the market capitalisation is expected to surge by 20 per cent.

BSC also expects foreign investors to net buy a value of $500 million thanks to M&A deals at large private companies and listed banks. Therefore outflowing pressure from offshore is declining.

Meanwhile, in a less positive scenario, the securities firm said that the benchmark was forecast to reach 1,633 points with the EPS growing 13 per cent and the P/E being 17 times. The market capitalisation would inch up about 10 per cent and foreign investors would net sell a value of about $200 million.

The VN-Index closed last week at 1,496.02 points and posted a weekly loss of 2.1 per cent due to strong selling force.

Source: VNS


Vietnam looks forwards to stronger investment from US, Europe

Vietnam is hoping to attract more investment from the US, Europe and major global enterprises under a recently approved strategy on foreign investment cooperation.

People in HCMC wait in long queues at passport office on July 1

On July 1 afternoon, thousands of people lined up waiting for passports at the Immigration Department on the first day of issuing ordinary passports in the new form.

Three SARS-CoV-2 Omicron variant BA.5 cases detected in Hanoi

Although the number of daily new cases of Covid-19 is decreasing sharply, Hanoi has recorded three infections caused by the BA.5 sub-strain of the Omicron coronavirus variant.

Binh Duong ranks first nationwide by GDP

The southern province of Binh Duong took the lead among Vietnam’s 63 provinces and cities in terms of gross domestic product (GDP) per capita in 2021, according to the latest data released by the General Statistics Office.

Tan Hoang Minh allegedly appropriates VND8 trillion of investors

Tan Hoang Minh Group, a major property developer based in Hanoi, is facing charges of misappropriating over VND8 trillion from investors, said a Ministry of Public Security representative.

Businesses get set for circular economy

Vietnam’s rapid economic growth has caused environmental challenges which have forced the nation to focus on fostering the development of a circular economy with less pollution and reused and recycled products.

Over 60,000 fishing vessels urged to seek safe shelter from storm Chaba

Approximately 60,000 fishing vessels operating at sea have been urgently notified to avoid dangerous areas and seek safe shelter from incoming Storm Chaba, according to the National Steering Committee for Natural Disaster Prevention and Control.

Siem Reap - Da Nang air route resumed

Flight K6 840 departed from Siem Reap of Cambodia at 3:35 pm on July 1 and landed safely at Da Nang International Airport at 5:35pm on the same day.

Embassy: two Vietnamese arrested in Spain for alleged sexual assault

Police on the Spanish island of Mallorca on June 25 said they had arrested two Vietnamese citizens accused of raping a 17-year-old girl and privacy violation, according to the Vietnamese Embassy in Spain.

The key role of top leaders in fighting corruption in Vietnam

Head of the Party Central Committee's Commission for Internal Affairs Phan Dinh Trac has emphasized the important role of top leaders, especially Party Secretary General Nguyen Phu Trong, the people and the media in fighting corruption.

Huge costs for filling Ha Long largest open-cast coal mine

It would cost about VND 1.20 trillion (USD 52.18 million) to fill the Nui Beo open-cast coal mine pit in Ha Long City after closure.

Cutting taxes on petrol products is more urgent than ever

“VND50,000 please. No, just VND30,000."  “VND100,000, please. No, only VND70,000." These were conversations I heard yesterday at a filling station.

28 provinces, 21 central hospitals report lack of drugs, medical equipment

Twenty-eight healthcare departments and 12 out of 21 central hospitals have reported they lack drugs.

HCMC proposes developing huge port in Can Gio

The HCMC government has proposed developing an international container port in the outlying district of Can Gio with an estimated investment of some US$6 billion to aid the local marine economy.

500 tonnes of Vietnamese-labelled rice exported to EU

Loc Troi Group JSC exported nearly 500 tonnes of rice labelled with its own brand name “Com Vietnam Rice” to the EU markets in June.