Market liquidity

The central bank’s flexible management of monetary policy and the return of capital into markets around the world would have positive impacts on Vietnam’s market. Foreign investors sway back to the local stock market amid Vietnam’s bright economic outlook in the long term, according to a report from the SSI Securities Corporation. An investor at a securities company in Hanoi. File photo In July, Vietnam’s stock market witnessed a net outflow of VND347 billion (US$14.8 million) following a net inflow of VND8.37 trillion ($358 million) during the first six months of the year. Active funds also pulled a net amount of VND163 billion ($7 million) in July after two months of buying in. Among the lot, VFM VNDiamond withdrew VND522 billion ($22.3 million) in July after buying in a net amount of VND5.6 trillion ($239.4 million) in the first half, VanEck with VND300 billion ($12.8 million), and VFM VN30 with VND120 billion ($5.13 million). On the contrary, Fubon … [Read more...] about Vietnam’s positive outlook lures foreign investors back to stock market

An investor was watching his cellphone in front of a stock trading board. — Photo cafe.vn The number of newly-opened securities accounts dropped sharply in July to the lowest in about two years as stock market liquidity hit a monthly low. Data from the Viet Nam Securities Depository (VSD) showed domestic investors opened 199,128 new securities accounts last month, a decline of 57 per cent over the previous month. This is the second time the number of new accounts opened in the country has dropped below 200,000 units. The last time was in February, which coincided with the Lunar New Year Holiday. Retail investors continued to be the market’s key contributor opening 198,988 new accounts, with 140 accounts from institutional investors. Meanwhile, in July, domestic individual investors closed 3,279 accounts. In the first seven months of the year, domestic investors opened more than two million new securities accounts, far exceeding the figure for 2021 (1.53 million accounts). … [Read more...] about New securities accounts hit near two-year low in July

A customer using a tablet at a HDBank (HDB) branch. HDB rose 1.2 per cent Monday. — Photo courtesy of the bank Vietnamese shares opened higher on Monday, led by banking and large-cap stocks which were bolstered by continued improvements in investors’ sentiment. On the Ho Chi Minh Stock Exchange, the VN-Index edged up 0.32 per cent to close Monday at 1,256.75 points. The VN-Index had risen by 3.85 per cent last week. Some 699 million shares worth VND15.8 trillion (US$675.5 million) were traded on the southern exchange. The market's breadth was positive with 271 stocks climbing, of which 75 stocks hit ceiling prices, while 189 stocks declined. The index's rallies were driven by sharp gains in some large-cap stocks, especially in the banking sector. The VN30-Index, which tracks the 30 biggest stocks on HoSE, jumped 0.36 per cent, to 1,276.70 points. In the VN-30 index, gainers included Sacombank (STB), HDBank (HDB), ViBank (VIB), VPBank (VPB), Techcombank (TCB) and … [Read more...] about Shares open the week higher on banking sector

In long term, transforming the higher education system will be key to boosting Vietnam’s productivity and helping achieve its goal of becoming a high-income country by 2045. Vietnam’s GDP growth is forecast to surge from an estimated 2.6% in 2021 to 7.5% in 2022, with backing from resilient manufacturing and a robust rebound in services. Overview of the event. Photo: Nguyen Tung Country Director for the World Bank in Vietnam Carolyn Turk revealed the figures at the launch of its bi-annual economic outlook for Vietnam titled “Taking Stock: Educate to Grow” today [August 8]. According to Turk, the global economy has been experiencing a series of very large and negative shocks, including ongoing Covid-19-related disruptions and supply shocks associated with the Russia-Ukraine conflict. In this context, Vietnam’s economy has shown “relative resilience and staged a strong rebound after last year’s Covid-19 induced slowdown,” Turk said. Vietnam’s economic … [Read more...] about Vietnam’s GDP growth set to expand by 7.5% in 2022: World Bank

Illustrative photo. Bad debt risks The second quarter financial statements of commercial banks state that the total amount of bad debts on the balance sheet at VPBank stood at VND20,625 bln, up 27 percent compared to the beginning of the year, bringing the bad debt and loan ratio on the bank consolidated report to increase sharply from 4.57 percent to 5.25 percent . VietBank was also in the group with a bad debt ratio exceeding the prescribed threshold at 3.99 percent. Although the remaining banks still kept the bad debt ratio at 3 percent, it was clear that bad debts are now showing signs of further increasing. At Vietnam International Commercial Joint Stock Bank (VIB), the total bad debt at the end of June stood at around VND5,428 bln, a 16.2 percent increase compared to the beginning of the year. In this, Group 4 debt increased 32 percent to VND2,125 bln, and Group 5 debt increased 67 percent to VND2,210 bln. In the first six months of the year, Group 4 debt at TPBank … [Read more...] about Banks avoiding further bad debt risks