Vietnam stock market"s outlook still bright in second half of 2022
Speakers attending the conference on "Inflation, Interest rates and Securities" on July 15. (Photo: VNA)
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.
However, experts are still optimistic about the market’s outlook in the second half of 2022 thanks to positive internal forces.
After recovering quickly in 2021 with a growth of 5.7%, global economies are facing uncertainties due to the ongoing complexity of the COVID-19 pandemic; geopolitical risks, especially the Russia-Ukraine conflict; the slow down of the Chinese economy affected by the zero-COVID policy; and rising oil prices that resulting in record high inflation in many countries.
Inflation, debt and energy are three hot issues, BIDV Chief Economist Can Van Luc emphasised at the conference on “Inflation, Interest rates and Securities” held by Vietnam Financial Consultant Association (VFCA) and VietFirst Securities Corporation (VSC) on July 15.
Statistics showed that the country’s stock market has tumbled sharply to hit bottoms for four periods in its history, including 2007-2008, 2011-2012, 2018-2019 and this year.
In the three previous periods, the Fed rate hikes, high US inflation and high international oil prices influenced the market’s turbulence. And this time is no different, said Nguyen Minh Hoang, director of the Analysis Department at VietFirst Securities.
For the first half of 2022, the market benchmark VN-Index fell more than 20% and lost 25% from the peak of 1,500 points.
The market began its downtrend after Fed raised interest rates for the first time in June.
However, experts are still optimistic about the market as the country’s economy sees positive signals.
“Our macroeconomy is stable with growth in GDP and consumer price index within control,” Hoang said.
Rallies of commodities prices are also expected to stop, helping to contain inflation.
In addition, the quick recoveries of listed enterprises are a bright spot for the market. “We believe that our listed companies still can post a growth of 21-25% this year,” Luc said./.
Related News
Take advantage of e-commerce leverage for export
13:25 | 20/04/2024 Import-Export
Maintain the reputation of Vietnamese coffee amidst soaring prices
17:06 | 14/04/2024 Import-Export
Sustaining growth solutions for coffee exports
10:34 | 13/04/2024 Import-Export
Be objective before requesting anti-dumping investigation on imported HRC steel
15:27 | 09/04/2024 Import-Export
Latest News
Old loans must endure higher interest rates temporarily: central bank
15:44 | 19/04/2024 Finance
State-owned enterprises flourished
14:15 | 19/04/2024 Finance
Forum discusses support for women-owned firms to join supply chains
17:41 | 18/04/2024 Finance
Ensure savings and prevent losses in disbursement of public investment
10:24 | 18/04/2024 Finance
More News
Implementing unprecedented fiscal policies to actively support people and businesses
16:25 | 17/04/2024 Finance
Foreign investors net sell in Vietnamese market, banking sector attracts interest
16:13 | 17/04/2024 Finance
Banks record positive business indicators in Q1 2024
14:20 | 16/04/2024 Finance
The finance sector focuses on perfecting institutions, ensuring financial discipline, and budgetary rigor
10:00 | 16/04/2024 Finance
IASB recommends Vietnam prepare infrastructure to apply IFRS
09:57 | 16/04/2024 Finance
Strong decentralization for ministries, branches and localities to manage and use electricity projects
10:50 | 15/04/2024 Finance
The Tax sector’s revenue collection reached 33% of current appropriation
10:50 | 15/04/2024 Finance
Savings interest rates begin rising amid slowing bank deposits
17:58 | 14/04/2024 Finance
Ministry of Finance conducts general verification of public assets
17:07 | 14/04/2024 Finance
Your care
Old loans must endure higher interest rates temporarily: central bank
15:44 | 19/04/2024 Finance
State-owned enterprises flourished
14:15 | 19/04/2024 Finance
Forum discusses support for women-owned firms to join supply chains
17:41 | 18/04/2024 Finance
Ensure savings and prevent losses in disbursement of public investment
10:24 | 18/04/2024 Finance
Implementing unprecedented fiscal policies to actively support people and businesses
16:25 | 17/04/2024 Finance