Foreigners Hold $1B in Cash, Raise Vietnam Share Holdings
Foreign investors hold $1 billion in cash in their accounts at Vietnamese securities companies by end-September as they have moved to buy and hold high-liquidity equities on improving domestic economy.
They have raised share holdings to 80% of their portfolios over the past ten months, compared to an equal proportion of shares and bonds in 2008, said Nguyen Thanh Long, deputy head of the Fund Management Division under the State Securities Commission (SSC).
After 30 consecutive buying sessions with a combined net value of VND3 trillion of local shares in July and Aug., foreigners turned to buy VND1 trillion again over the past one week.
Director of Dragon Capital Hanoi Phan Minh Tuan said funds run by the group always restructure portfolio and limit holding cash.
Last month, Vietnam Enterprise Investments Limited (VEIL), the biggest fund run by Dragon Capital, cut cash amount to 5% of its net asset value, bond holding to 2% while raising share holding to 73%.
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) now holds 35.6% of shares, 12.8% in cash and other assets, 0.6% in bonds and 14.9% in unlisted shares.
The State Bank of Vietnam said foreign indirect investment capital into the country has surged in recent months. The total value of foreign equity holdings in Vietnam is not available, however. (Stock Investment)
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