Expectations to upgrade Vietnam’s stock market

Prime Minister Pham Minh Chinh receives Mr. Joseph Bae, CEO of Kolhberg Kravis Robert Investment Fund (KKR), in New York on the morning of May 16, local time – Photo: NGUYEN KHANH

According to experts, if information on upgrading Vietnam’s stock market to an emerging market is widely publicized after the Prime Minister’s meeting with leaders of the New York Stock Exchange, foreign capital will flow massively. poured into the domestic stock market.

Reply YouthMr. Tran Duc Anh – director of macro research and market strategy at KBSV Securities Company – said that the issue of upgrading Vietnam’s stock market to an emerging market has been mentioned since 2014. At that point, we have made certain efforts to be upgraded, such as opening room to 100% for foreign investors and improving market entry procedures for foreign investors. However, those changes are not enough to be upgraded to the market.

According to Mr. Anh, if there is a positive signal about market upgrading after the Prime Minister’s visit to the US, many foreign investors will look at the opportunity to upgrade the market in the next 3 years to accelerate capital disbursement into the US market. Vietnam’s stock market to take advantage of opportunities.

“Many large investment funds are ignoring marginal markets like Vietnam’s stock market today, they only focus on investing in emerging markets, so if they are upgraded to the market, the opportunities are huge. “, Mr. Anh said and forecast: “When the information on upgrading the domestic stock market to become an emerging market is widely publicized, foreign capital inflows will massively invest in the Vietnamese stock market.”

The Prime Minister meets the New York Stock Exchange Board of Directors on May 16 (local time) – Photo: VGP

With the same view, Mr. Do Bao Ngoc – Deputy General Director of Kien Thiet Securities Vietnam Company – said that currently the Vietnamese stock market is not eligible to upgrade from the frontier market to the emerging market because We still lack many elements.

“If the missing factors are soon overcome, the Vietnamese stock market will be recognized as an emerging market and thereby will attract more foreign capital inflows into the market. For example, ETF investment funds in the world world will increase the proportion of their investment capital allocation to emerging markets”, Mr Ngoc commented.

“The missing elements”, according to Mr. Ngoc, is that there is no exchange; lack of an independent payment center; there are still many barriers to foreign investors; and not yet agree on technology standards and game rules.

Mr. Ngoc assessed that the capital allocation ratio of ETFs in emerging markets will be much larger than in marginal markets. Therefore, if Vietnam’s stock market is recognized as an emerging market, there will be a large amount of capital from ETFs investing in the domestic stock market. ETFs will also buy large-cap stocks, belonging to the VN30 group.

“ETF investment funds will accelerate disbursement to the domestic market”, Mr. Ngoc emphasized.

According to this expert, when the domestic stock market becomes an emerging market, active investment funds will evaluate the Vietnamese stock market more positively, and they will seek more investment opportunities in Vietnam. Vietnam. In addition, being recognized as an emerging market will solve many problems with the domestic market, especially in attracting foreign capital flows.

“If Vietnam’s stock market is recognized as an emerging market, it is estimated that tens of billions of dollars more will be invested in the Vietnamese market through two channels of ETFs and active investment funds,” he said. Ngoc said.

Prime Minister rings bells at NYSE

Prime Minister Pham Minh Chinh rang the bell to end the trading session at the New York Stock Exchange (NYSE) on May 16 local time – Photo: VGP

On the afternoon of May 16 (New York time), Prime Minister Pham Minh Chinh met with leaders of the New York Stock Exchange (NYSE). Prime Minister has hammering the end of trading session at the New York Stock Exchange (NYSE).

Here, Prime Minister Pham Minh Chinh attended a roundtable discussion with CEOs of some leading corporations and investment funds in the US such as Blackstone, JPMorgan, Deutsche Bank, Goldman Sachs, Herbalife, Verizon… enterprises have been interested in investing in Vietnam market.

Also at the NYSE, Prime Minister Pham Minh Chinh witnessed the awarding ceremony of two documents in the fields of finance, banking and investment funds. Specifically, cooperation between the State Securities Commission (SSC) and NYSE on supporting market upgrading, building a mechanism for investors to participate in the two stock markets.

In the morning of the same day, the Prime Minister visited the United Nations (UN) headquarters in New York. The Prime Minister met with UN leaders: UN Deputy Secretary-General Amina Mohammed, UNICEF Executive Director Catherine M. Russell, UN General Assembly President Abdulla Shahid and UNDP Executive Director Achim Steiner.

NGUYEN KHANH