Banking & Finance

It has been forecast that the inflation rate in Vietnam will probably exceed 4 per cent year-on-year in the second quarter, due to increases in the global prices of electricity, pork, and oil. Viet Dragon Securities believes that banking shares have clear profit growth prospects in the second half of the year, while steel, retail, warehousing, and exporter shares are also expected to attract cash flows.

The State Bank of Vietnam (SBV) has issued Decision No. 116/NHNN-QD announcing a list of legal documents in the banking sector that have expired or have ceased to be in effect, in all of or in part of its field of management. Nineteen documents are completely invalidated and 29 partially invalidated.

According to figures from VnDirect, as of February 9, 768 companies listed on the HoSE, HNX, and UPCoM exchanges had released their business results for the fourth quarter of 2021. The total profit of listed companies rose 15.5 per cent year-on-year but was lower than in the third quarter.

More than VND23 trillion ($1.02 billion) was mobilized through the government bond channel in January. The State Treasury plans to issue VND105 trillion ($4.64 billion) worth in the first quarter of 2022. The MBS Securities Company believes that government bonds remain the first choice for those seeking liquid assets with fixed profitability, so even though yields are low, market absorption is still good.

In discussing the prospects for Vietnam’s stock market in 2022, Chief Economist at VinaCapital, Mr. Michael Kokalari, said profit growth at enterprises is expected to reach 26 per cent this year. Stocks in banking, real estate, and non-essential goods have the greatest growth prospects, he added.

According to analysts and representatives from a number of securities companies and investment funds, the prospects for Vietnam’s stock market this year are bright, with cash flow continuing and account numbers nearing 10 million. The market will remain an attractive investment channel in the long term.