Foreign investors have still not changed their optimistic viewpoint on Vietnam's stock market despite the long slump over the past months, asserting that Vietnam is one of the three most attractive investment addresses in Asia, the local Vietnamnet reported.
Although investors’ confidence is shaken, the local stock market will not see a crisis, said Percy Batlywalla, managing director of the Financial Institutions and Banks under JP Morgan.
First, Vietnam’s economy, though being influenced by many factors, is still on the right track of development, he said.
Second, Vietnam has learned lessons in dealing with financial crises. It experienced the Asian financial crisis 10 years ago.
Third, foreign investors are unlikely to withdraw their capital from the stock market of Vietnam unless they lose all confidence. However, the government of Vietnam is making efforts to stabilize the market.
An official of the State Bank of Vietnam said foreign investors will not withdraw from the market as they did with Asian stock exchanges in 1997-1998. “When the stock market slumps, foreigners still keep buying in while domestic traders kept selling across board,” he proved.
Craig Weeks, Director of Global Finance and Trade under JP Morgan, said JP Morgan plans to expand operation in Vietnam. Vietnam is still among three most attractive markets in Asia.
“The local government's decisions to tighten credit policies and ask the State Capital Investment Corporation to join the stock market as an investor are now right moves at the moment,” said JP Morgan’s Director in Vietnam, Dominic Price.
The development of Vietnam’s stock market will become more sustainable when the market capitalization exceeds GDP, he added. (Securities Investment)
Vietnamese
