Banking & Finance

The positive long-term outlook for Vietnam’s stock market has begun to show signs of triggering cash flows from actively disbursing funds. According to SSI Research, in August, cash flows from funds were more active and more evenly disbursed, with net buying of VND260 billion ($11 million). The number of funds actively net buying increased, while the level of net withdrawal by some funds has fallen gradually.

SGI Capital reports that Vietnam joined other ASEAN countries and India in terms of good stock market performance in August.

The Hanoi Stock Exchange (HNX) has said that trade saw strong breakthroughs in August, especially in the first two weeks of the month. The HNX-Index reached its peak for the month on August 15, standing at 303.97 points, or 4.8 per cent higher than its July peak. The index closed on August 31 at 291.91 points, up 7.3 per cent compared to July.

Ms. Nguyen Thu Oanh, Director of the Department of Price Statistics at the General Statistics Office, said that despite pressure and difficulties in the global context, Vietnam’s CPI was under control in the first eight months of the year, at 2.58 per cent, which eases pressure on input costs. Underlying impacts, however, remain.

The State Bank of Vietnam (SBV) adjusted the selling price for USD from VND23,400 to VND23,700 on the afternoon of September 7. It also stopped listing the intervention buying rate. According to analysts, the decision to raise the selling price is mainly a defensive measure against upcoming US Fed interest rate hikes.

Under Directive No. 02/CT-BTC issued recently by Minister of Finance Ho Duc Phoc, the State Securities Commission (SSC) will closely examine registration documents for listing / registering for securities trading, especially for companies that raise capital quickly and also newly-established enterprises. The SSC will also work with the country’s three exchanges to closely monitor stocks with large liquidity, making unusual movements, or having valuations that are not suitable with the production and business situation.