Vietnam’s economy has come under many challenges in recent times from both external and internal factors and results in traditional investment channels have been affected, analysts and business insiders told the “Managing investments in a flexible environment” seminar held in Hanoi on July 15.

The instability of the global economy and adjustments from the State Bank of Vietnam (SBV) regarding fiscal and monetary policies that affect investments and capital flows have created turbulence in the investment market, the seminar heard.

However, some investment funds still posted positive business results. In the fund management sector, despite changes in the market, the total value of open-ended funds and exchange-traded funds (ETFs) reached VND74 trillion ($3.18 billion) in the first five months of 2022, mainly from stock funds, said Ms. Nguyen Thi Hang Nga, CFA and Deputy CEO of Vietcombank Fund Management (VCBF).

Dr. Le Xuan Nghia, meanwhile, assessed that the economic recovery and development package from the government has positively affected the finance market but still bears shortcomings regarding the banking industry. However, he predicted that the securities market will recover and overcome its present difficulties. The securities market can only be maintained if the real estate market is stable, he added.

Individual investors should focus on medium and long-term investments and manage problems relating to capital and investing, Mr. Nguyen Van Ngoc, Chairman of the Board of Directors at the KB Group, commented. Investors should “restructure their assets, have better rental cash flows, or take advantage of public investment,” he noted.

Ms. Nga also advised that investors consider their capabilities when choosing whether to invest in fund certificates.

Although it is a difficult time to invest, the market still has positive points in the medium and long terms. “The development of technology and online payments, especially during the pandemic, shows that this is a good time for personal investment channels,” Mr. Ngoc said. In addition to traditional investment channels such as real estate, securities, bonds, gold, and foreign currencies, new investment channels are being developed and perfected.

Emerging investment channels

As well as traditional markets, which are assessed as being turbulent in the short term, there are also new investment channels that are promising, such as blockchain.

“New investment opportunities will always emerge, regardless of whether the market goes up or down,” Mr. Duc said. “Clearly the most important thing in the battle between financial companies is the issue of relatedness in technology investment and how to use automated algorithms to compete.”

“Investor interest and taste in new investment channels are very different, especially for channels that have been affected by constant fluctuations in the economy in recent years,” said Mr. William Do, CEO of investment fund Hobbit Investment.

Mr. Duc said new investments are a major category in themselves, in which there are a variety of sub-categories. Vietnamese products are able to match the world’s but only attract small sums, which he puts down to the legal framework.

Vietnam should have sandbox models and draft legal documents for new investment channels, Mr. Le Van Duong, Partner and Head of the Hanoi Office at Indochine Counsel, told the seminar.

Individual investors, when approaching a new investment channel, should “know how they are protected and what the level of intervention is in protection,” according to Mr. Thai Viet Dung, Commercial Director at Exness Vietnam.