On addressing the meeting, VinaCapital chairman Horst F.Geicke said that because of the government’s tight monetary policy and the adverse impact of the global economic crisis, liquidity of Vietnamese stock market fell sharply in early 2008.
Horst F.Geicke, however, confirmed that Vietnam has proved its potential by emerging well from the crisis to maintain a growth rate of five percent in 2009.
The company’s chairman also said the rapid recovery of both trading floors (Hanoi and Ho Chi Minh City) this year is a solid foundation for increasing investments in other sectors.
Vietnam’s stock market has experienced a significant rise of 80 percent by far this year. However, not many foreign investors are interested in the market and, as Mr. Geicke put it, this is attributed to the negative impact of the economic crisis. Another reason is that investors tend to draw comparisons markets before deciding to invest their money.
As a result, stocks of funds managed by VinaCapital as well as other funds are being transacted at a price lower than their real value. VinaCapital’s total asset value dropped to USD1.8 billion in October 2009 from USD2.2 billion in late 2007.
In the meanwhile, although the rate of FDI disbursement has been maintained at a high level, the number of new investors in Vietnam is not significant and FDI commitments have fallen by 80 percent compared to last year.
The company’s CEO Don Lam said there are good reasons to believe that Vietnam will be an “attractive investment destination” among the leading newly-emerging markets. Firstly, the Government has effectively weathered the economic crisis. Secondly, the stimulus package has helped the economy to recover. Finally, the temporary fall in the flow of FDI will not have long-term effect.
A new trend for investments in 2010
VinaCapital specialists said that the “hot spots” for investment inflows next year will be health services, consumer products, financial services, the energy industry, the high technology industry, retail malls and up market residential projects.
Don Lam said short-term speculation on the stock market and investment in high-class residential projects and office buildings will decrease in 2010.
VinaCapital is said to be launching an unlisted estate investment fund in 2010. The company believes it is a new trend that could attract organised investors who do not invest in listed funds