Mr. Petri Deryng, Head of Finland’s Pyn Elite Fund, believes investors need not be overly concerned about investments in its portfolio despite the poor mood in the market, as Vietnam’s economic situation remains strong.

Investors have been worried in recent times, as the value of PYN Elite’s stock has fallen sharply. Vietnamese leaders continue to take disciplinary measures against irregularities in financial markets, such as the Van Thinh Phat case, and now the bond market of real estate companies is being closely monitored.

Many depositors with the Saigon Commercial Joint Stock Bank (SCB) have been concerned about their savings, with massive withdrawals resulting in listed bank shares plummeting.

“Nothing seems to be able to keep the stock market stable right now, and investors have to endure dramatic price swings,” Mr. Deryng said. “Investors need not worry too much about investments in the Pyn Elite Fund’s portfolio, however, as even though the mood in the market is pretty bad, Vietnam’s economic situation remains strong, despite rising interest rates slowing down growth to some extent.”

A fund report showed that, as of the end of September, its performance was -13.19 per cent, for its worst loss in 29 months, since March 2020, of -26.78 per cent. Generally, in the first nine months of the year, the performance of Finnish funds was -28.65 per cent; a record since entering Vietnam’s stock market in 2013 but slightly better than the decline of the VN-Index in the same period, of 30.9 per cent.

“Vietnamese stocks are inherently cheap, but, of course, they could fall further due to weak global sentiment, as valuations on major stock markets adjust to rapidly rising interest rates and cut earnings growth prospects due to economic recession,” he said.