Stock market expected to maintain growth path in 2021
Executives of Green Plus Joint Stock Corporation, Sato Yakuhin Kogyo, Ho Chi Minh Securities Corporation, and Vietcombank’s Binh Tay branch sign co-operation agreements at a seminar on opportunities and challenges for the stock market in 2021 held in HCM City on March 27. (Photo: VNA)
Vietnam's stock market is expected to maintain its growth momentum of last year at 15-20 percent based on positive supporting factors, experts have said.
Speaking at a seminar on opportunities and challenges for the stock market in 2021 held recently in Ho Chi Minh City, Can Van Luc, chief economist of the Bank for Investment and Development of Vietnam, said “Vietnam has successfully implemented the dual goal of containing the COVID-19 pandemic and reviving the economy.
“With its economic recovery momentum, most organisations forecast that Vietnam’s economic growth is likely to surge to 6.5‐7 percent in 2021. And at the same time, we can control inflation well at below 4 percent.”
In this context, domestic and foreign investment flows to the country will be stronger than those of last year, he said.
The number of new trading accounts opened more than doubled last year, driven by the desire of local investors to achieve higher returns as the interest rates paid on their bank deposit accounts plunged. And the momentum will continue this year, he added.
Dr Vo Tri Thanh, director of the Central Institute for Economic Management, said that production and trading activities have been maintained and export growth has recovered quickly, while the new generation of free trade agreements will also increase export and investment cooperation.
This will help promote the stock market in 2021 and the years to come, he said.
Dang Duc Thanh, chairman of the Economists Club, said: “With the Government's promotion of public investment, policies to attract FDI investment, maintenance of low interest rates, adjustment of economic stimulus packages, and effective control of COVID-19, it has made an important contribution to boost the stock market’s growth."
The VN-Index surpassed 1,200 points on March 18, creating optimism among investors, he said.
Dr. Nguyen Son, chairman of the State Securities Commission’s Vietnam Security Depository, said that: “Having vaccines to prevent COVID-19 and the trend of shifting international capital flows from the banking sector (which yields low interest rates) to other investment channels such as stock and valuable assets such as gold and real estate will help the global stock market in general and Vietnam's stock market, in 2021.
“Vietnam continues to be evaluated as a bright spot for regional investment by international organisations as it is one of the few countries that has effectively controlled COVID-19 and achieved positive growth in 2020,” he said.
He said the VN-Index would increase by hundreds of points this year.
Despite many opportunities, the stock market in 2021 still faces risks, notably the unpredictable development of COVID-19, an increase in trade defence globally, risks involved in inflation and exchange rates, and persion of investment flows to other areas, they said.
Son also mentioned problems faced by the Vietnamese stock market, such as the slow process of equitisation of State-owned enterprises and pestment of State capital in equitised enterprises. Moreover, the upgrading of the market from frontier to emerging status still faces obstacles and the current IT system has not met the fast development of the securities market.
To enable the market to develop in a sustainable manner, the securities sector will focus on putting new regulations and policies in the Law on Securities into practice to support businesses and protect the legitimate rights and interests of investors, he said.
It will also map out a Stock Market Development Strategy for the 2021-30 period to shape goals, solutions and a roadmap for the development of the stock and capital market in the long run, he said.
In addition, the sector will enhance the modernisation of information technology systems and administrative procedure reform, launch new products, restructure the security market, and speed up equitisation and pestment of State capital in State-own enterprises and the listing of these firms on the stock exchange to increase market liquidity and supply, he said.
At the seminar, which was held by the Economists Club, Ho Chi Minh Securities Corporation (HSC) and Green Plus Joint Stock Corporation, Green Plus signed a cooperation agreement with Japan’s Sato Yakuhin Kogyo, HSC, and Vietcombank’s Binh Tay branch./.
Related News
Transparency evates the standing of listed companies
09:47 | 21/11/2024 Finance
Diversify and innovate securities products to attract foreign investors
15:30 | 20/10/2024 Finance
Important step to soon upgrade stock market
10:21 | 03/10/2024 Finance
Foreign institutional investors allowed to buy stocks without 100 percent pre-funding -trading
09:07 | 22/09/2024 Finance
Latest News
Monetary policy forecast unlikely to loosen further
15:51 | 22/11/2024 Finance
World Bank outlines path for Vietnam to reach high income status
13:44 | 22/11/2024 Finance
Strictly control public debt and ensure national financial security 2025
09:26 | 22/11/2024 Finance
Revising the title of a draft of 1 Law amending seven finance-related laws
14:33 | 21/11/2024 Finance
More News
State-owned securities company trails competitors
14:46 | 20/11/2024 Finance
Strengthening the financial “health” of state-owned enterprises
09:23 | 20/11/2024 Finance
U.S. Treasury continues to affirm Vietnam does not manipulate currency
13:46 | 19/11/2024 Finance
Exchange rate fluctuations bring huge profits to many banks
13:43 | 19/11/2024 Finance
A “picture” of bank profits in the first nine months of 2024
09:42 | 19/11/2024 Finance
Many challenges in restructuring public finance
10:02 | 18/11/2024 Finance
Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs
09:19 | 17/11/2024 Finance
Disbursement of public investment must be accelerated: Deputy PM
19:32 | 16/11/2024 Finance
HCMC: Domestic revenue rises, revenue from import-export activities begins to increase
09:36 | 16/11/2024 Finance
Your care
Monetary policy forecast unlikely to loosen further
15:51 | 22/11/2024 Finance
World Bank outlines path for Vietnam to reach high income status
13:44 | 22/11/2024 Finance
Strictly control public debt and ensure national financial security 2025
09:26 | 22/11/2024 Finance
Revising the title of a draft of 1 Law amending seven finance-related laws
14:33 | 21/11/2024 Finance
Transparency evates the standing of listed companies
09:47 | 21/11/2024 Finance