Banking & Finance

In an update on Vietnam’s stock market outlook, the Pyn Elite Fund said global stocks may go down in the future but Vietnamese stocks, based on current valuations, are extremely cheap. The Finnish fund also expects that Vietnamese stocks will not be overly affected by the conflict in Ukraine or any collapse in the Nasdaq, and forecast income growth of 19-29 per cent this year.

With its plan to carry out term repurchase agreements of government bonds worth VND74.74 trillion ($3.18 billion) and to buy $200 million worth of foreign currencies, the State Treasury is expected to supply a total of VND78 trillion ($3.38 billion) to the market in the second quarter of this year, contributing to shoring up VND liquidity.

According to analysts, the weakest points of the individual corporate bond market in particular and the financial market in general are inspections and supervision. In order to develop a sustainable bond market, it is necessary to strengthen inspections and supervision as well as boost transparency, while supplementing legal regulations and investor protection mechanisms.

Exchange-traded funds (ETF) capital in Vietnam remained at a positive level last week, of $1 million, despite negative ETF capital flows rising sharply in Southeast Asia, reaching $107 million, according to the KIS Vietnam Securities Corporation.

According to VnDirect, with credit in the real estate sector being tightened, investors will become more cautious in expanding their land funds. The trend in the future will be project cooperation between Vietnamese investors and foreign developers. VnDirect also expects the real estate market to see supply recover this year as developers focus on boosting sales to improve cash flows.

The French Development Agency (AFD) is seeking to develop green financing in Vietnam and provide technical support to the State Bank of Vietnam (SBV) and banks in order to fulfill the commitments Vietnam made at COP26 last November to reach net-zero emissions by 2050, according to Mr. Philippe Orliange, Executive Director of the AFD. It will conduct market research this year to assess the ability to provide multi-sectoral credit to a number of banks in the country.