return icon

Vietnam hopes to attract huge capital as central banks print $6 trillion

Experts say Vietnam has the opportunity to attract more foreign portfolio investment as central banks are launching $6 trillion in quantitative easing programs in 2020.

According to KIS Vietnam, ETF capital to Southeast Asia increased sharply in the third week of May (May 18-22) to $27 million, the highest level in the last month.




Vietnam was the main contributor to the increase which attracted $17 million. This included $14 million attracted by VFMVN Diamond, an ETF which was presented before the public in May 2020.

Affected by the pandemic, the Vietnamese stock market saw slight decreases before rebounding.

According to Bui The Tan from SSI, market liquidity has been stable recently, with the trading value of VND5 trillion per trading session, an increase of 4 percent compared with the same period last year.

“Investors feel confident in buying,” Tan said.

Vu Viet Ngoan, former head of the Prime Minister’s Economic Advisory Board, said that global stock markets had declined because of Covid-19, but only very slightly compared with the two recessions in the past. This is because the central banks made very prompt interventions to prevent the economies from sliding into recession.

The moves by the governments and central banks helped consolidate investors’ confidence and create a large liquid cash flow, part of which can go to stocks and bonds in the financial market.

The moves by the governments and central banks helped consolidate investors’ confidence and create a large liquid cash flow, part of which can go to stocks and bonds in the financial market.

The government of Vietnam is trying to grab the opportunity to attract foreign capital, which will be an important factor affecting the recovery of the economy. The stock market is recovering well, but the country needs foreign capital for sustainable development.

In its report released recently, VinaCapital noted that Vietnam has the opportunity to attract foreign portfolio investment as central banks are going to launch $6 trillion through quantitative easing packages this year.

The money is likely to flow into frontier and emerging markets which promise higher profitability. The capital flow will support the stock market significantly.

The VN Index increased by nearly 50 percent in 2017 when ECB issued $1 trillion.

VinaCapital believes now is the time for Vietnam to change policies to attract more foreign capital from the money the central banks use to support their economies.

One of the biggest problems related to accessibility to the Vietnamese market that concerns foreign investors is the foreign ownership ratio ceiling.

The regulation on this issue was partially simplified in 2015, but only 82 out of 1,700 listed companies have lifted the foreign ownership ratio ceilings. Thirty shares have become inaccessible to foreign investors as foreign ownership ratios have hit the ceiling.

Mai Lan 


Foreign capital to flow into non-life insurers on hopes of State divestment

Foreign capital to flow into non-life insurers on hopes of State divestment

State divestment is expected to lure foreign investors into and lift Vietnam’s non-life insurance market.

Great opportunities for real estate firms to call for foreign capital

Great opportunities for real estate firms to call for foreign capital

Akihiko Iwatani, chief representative of Haseko Corporation in Hanoi, believes that Vietnam is the most attractive market in ASEAN for Japanese investors in particular and foreign investors in general.


Experts warn Vietnamese banks of risks following US banks’ collapse

If bond issuers fall into insolvency, the price of bonds could fall to zero, creating a high risk for banks.

Hanoi to resume tourism services on West Lake

Hanoi may resume 12 tourism services on the West Lake including boat transportation, after six years of suspension.

Car imports from Thailand still hold largest market share in Vietnam

Thailand once again led the market in terms of value and the number of CBU (complete built unit) cars imported to Vietnam in February 2023.

Deputy PM holds bilateral meetings on sidelines of UN 2023 Water Conference

Deputy Prime Minister Tran Hong Ha had bilateral meetings with many foreign leaders on the sidelines of the UN 2023 Water Conference, which is taking place in New York from March 22-24.

Vietnam temporarily suspends import, circulation of 15 types of medicines

The Drug Administration of Vietnam (DAV) under the Ministry of Health (MoH) has just issued an official dispatch on suspending the import, distribution, circulation and use of 15 types of medicines produced by Arena Group S.A. of Romania.

EVN urged to negotiate with renewable energy investors to fix electricity price

The Ministry of Industry and Trade has urged the Electricity of Vietnam (EVN) and investors of transitional solar and wind plants to negotiate and agree to fix electricity prices before March 31.

Two arrested in 11kg drug transport from France to HCM City case

The Ho Chi Minh City Department of Public Security has just arrested two people involved in the case of transporting over 11 kilograms of narcotics and ecstasy from France to Tan Son Nhat International Airport, Vietnam.


Renowned Vietnamese artists collaborate on unique porcelain artworks


Dragon fruit export turnover reaches 47 million USD

Boxer beats Spainish rival to advance to World Championship’s semifinals

Vietnamese boxer Nguyen Thi Tam trounced Spanish rival Laura Fuertes 5-0 in the women's light flyweight category to advance to the semifinals of the IBA Women’s World Boxing Championships in New Delhi.

Ministry of Health warns of possible outbreaks of dangerous diseases

In its yesterday’s official dispatch to people's committees of provinces and cities on organizing the implementation of the 2023 epidemic prevention plan, the Ministry of Health warned of possible outbreaks of dangerous diseases.

Another enterprise issues bonds, real estate bonds increase in value

A real estate firm has successfully raised funds by issuing VND4.7 trillion worth of corporate bonds. Just days before, another real estate firm also successfully issued VND2.3 trillion worth of bonds.

Stock market violations to face stricter sanctions

The State Securities Commission (SSC) will review the Law on Securities and related decrees to complete the legal framework, and strengthen sanctions for violations to protect the legitimate rights and interests of investors.

Association calls for pilot implementation of battery-powered taxis

The Hanoi Taxi Association is urging for the pilot implementation of battery-powered cabs to reduce environmental impact and stay abreast of global trends.

Vietnam strives to eliminate malaria once and for all

The Ministry of Health has announced plans to review, amend, and supplement professional guidelines to ensure nationwide implementation and assess the National Strategy for Malaria Prevention, Control, and Elimination by 2020.