Banking & Finance

The Ministry of Finance (MoF) has asked ministries and ministerial-level agencies to urgently allocate public investment capital in 2022 in preparation for disbursement. Regarding foreign capital, it has asked investors to soon complete applications for capital withdrawal and forward these to the ministry.

According to BIDV Securities, four drivers will boost Vietnam’s stock market in 2022: high economic growth, the large economic stimulus package, net foreign capital inflows, and exciting State divestment activities. Many new products, such as New Trading System, T+0, Individual Stock Futures, the VNX 200 Index, and Certificates of Deposit (DR), will be launched and also take the market forward.

The restarting of international flights from February 15 has taken aviation stocks to a new level. Most stocks in the industry have seen significant price increases, approaching the valuation levels quoted previously by many securities companies.

Liquidity in the banking system continued to be under pressure in the first trading week after the Lunar New Year (Tet). Banks have therefore borrowed capital from the State Bank of Vietnam (SBV) totaling more than VND15.6 trillion ($689.43 million).

Vietnam’s stock market has seen positive results in early 2022, making market valuations more attractive and bringing in foreign cash flows. Foreign investors net bought by more than VND2 trillion ($88.5 million) in the opening month of the year. The market is soon to welcome another investment fund from Taiwan (China) - the Jih Sun Vietnam Opportunity Fund (JSV Fund).

Vietnam has become the eighth member of the Southeast Asia Disaster Risk Insurance Facility (SEADRIF), giving it access to regional and international technical and financial solutions that strengthen its ability to protect its finances and citizens from natural disasters. With a coastline stretching over 3,200 km, Vietnam is regularly hit by natural disasters such as storms, floods, and drought.