Banking & Finance

According to the KB Securities Vietnam Joint Stock Company (KBSV), it is unlikely that foreign investors will be net buyers again in 2022 as some net selling factors are in place, especially in the context of developed countries gradually tightening monetary policy under inflationary pressure.

According to a survey of credit institutions on credit trends in the first quarter of 2022 announced by the Forecast and Statistics Department at the State Bank of Vietnam (SBV), 95 per cent of respondents expect pre-tax profits to grow this year, while 3 per cent expect the figure to remain unchanged and only 2 per cent are concerned about falling profits. In addition, 60.4 per cent said that the SBV’s credit policy and interest and exchange rates are the key factors helping improve business activities.

Together with the number of new stock market accounts continually setting records, individual investors net bought stocks during 2021 to the tune of more than $4 billion and this is forecast to prevail into 2022. Mr. Tran Hai Ha, General Director of MBS Securities Company, expects 2022 to again be a successful year for investors in the stock market.

Securities in Vietnam’s textile and garment sector increased 111 per cent last year, and the Vietnam Textile and Apparel Association has forecast a positive 2022, with export turnover rising 10 per cent to $43 billion. SSI Research, however, has estimated that most garment manufacturers will see lower gross profit margins compared to 2021 due to high fabric input costs in the first half of the new year.

The State Bank of Vietnam (SBV) actively offers support with Open Market Operations (OMO) during high liquidity “seasons”. It therefore injected over VND10.5 trillion ($460 million) into the system during the last week of 2021.

While other securities companies have assessed that the securities market will be better in 2022 than in 2021, SSI Research believes that 2022 will not be an easy year for the market. It predicts that profit growth of listed companies will not be high in the first half but will improve in the second half.