Vietnam remains a potential investment destination for medium and long-term foreign investors, experts said at a financial investment conference ATIC 2008 held in HCMC last weekend by HOSE and NextView, the Young People newspaper reported.
VinaCapital Group Director Andy Ho said at the meeting that Vietnam’s economic problems, such as escalating inflation and increasing trade deficit, would not last long.
The country has four potential elements to support medium and long-term investments: political stability, increasing FDI, rich natural resources such as oil, coal and seafood, with 60 per cent human resource of below 30 years old, and a 3,300-kilometer coast that offers advantage for developing sea ports and transport.
About US$15 billion worth of foreign direct investment (FDI) was poured into Vietnam in the first five months of 2008 and US$20 billion in 2007 for long-term projects.
Ho insisted Vietnam would continue to develop rapidly in the next 3-5 years despite short-term difficulties.
Ban Viet Securities Company General Director To Hai said Vietnam received US$10 billion worth of portfolio in 2006 and 2007, 90 per cent of which were from closed-end funds that will run for 5-10 years.
Foreign investors have invested a total US$600 million in Vietnam’s stock market since the beginning of this year while the foreign investments have been slashed in other Asian markets.
Although the market has no sign of recovery, Hai suggested investors should choose goods shares for long-term investments, such as stocks in rubber, mineral, seafood or consumer goods sectors.
Many foreign players are waiting for the government's policies to deal with current problems before deciding to buy in local stocks, Andy Ho noted.
Canada’s Master Money Traders founder Don Schellenberg said the ups and downs are natural at any market in the world, and the important thing is that investors must realize market's circles to decide right time for buying and selling. (Thanhnien Online, News)
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