Vietnam's securities industry welcomes foreign capital flow

While in the period before 2015, foreign securities companies mostly operated cautiously and exploratoryally, from the beginning of 2017 to the present, the Vietnamese stock market has witnessed a strong expansion of companies in this sector from countries across the continent.

The News Reporter had a conversation with Mr. Kang Moon Kyung - General Director of Mirae Asset Securities Joint Stock Company, headquartered in South Korea, and Mr. Huang Bo - Managing Director of Guotai Junan Securities, headquartered in Hong Kong (China), to better understand their reasons for investing in Vietnam and their direction in accompanying and developing the Vietnamese financial market.

I'm lucky to have joined Vietnam.

Mr. Kang Moon Kyung shared that the reasons the group decided to invest in Vietnam were its cost competitiveness, relatively abundant and young workforce, stable political environment, and supportive government policies.

Regarding attracting indirect investment capital in the stock market, Mr. Kang Moon Kyung assessed that the VN-Index is currently around the 10-year average P/E ratio, offering good opportunities for asset accumulation in the context of improving macroeconomic conditions and the potential for profit growth of listed companies.

“The securities industry has bright prospects from the developing economy , with positive financial indicators. The growth potential of this industry is increasingly large thanks to the acceleration of digital transformation and the exploitation of market potential,” said the CEO of Mirae Asset Securities.

Mr. Kang Moon Kyung - General Director of Mirae Asset Securities Joint Stock Company.

Sharing the reasons for deciding to invest in the Vietnamese market, Mr. Huang Bo, CEO of Guotai Junan Securities, said that the company had invested in Vietnamese securities through the purchase of IVS shares since 2019. Before investing, the group considered very important factors, including a stable political system, preferential policies for foreign investors, and growth opportunities.

“Through building and fostering partnerships with many countries and international organizations, Vietnam has achieved the necessary political stability to attract investment. The government has many policies to support foreign investors, and the regulations on preferential personal income tax for some key sectors have contributed to attracting investment and encouraging business,” shared a representative from Guotai Junan Securities.

Regarding growth potential, Mr. Huang Bo assessed that the Vietnamese market is undergoing a period of strong development, linked to stable economic growth, innovation, and reforms in the financial market. Furthermore, Vietnam is located in the heart of Southeast Asia, one of the fastest-growing regions in the world. This creates significant opportunities for financial investment activities.

“I believe that the stock market in particular and the Vietnamese economy in general are entering a golden age of development for the next several decades. There are many business opportunities in Vietnam, and frankly, we feel fortunate to have entered this market,” Mr. Huang Bo confided.

A strategic move to reap the rewards.

To support and develop Vietnam's financial market, Mr. Kang Moon Kyung stated that Mirae Asset Group has two key solutions.

Firstly, with over 20 years of experience, Mirae Asset can share in-depth knowledge in the fields of finance, securities, and asset management. This sharing not only increases market understanding for Vietnamese partners but also helps improve the quality and expertise of the industry.

Secondly, the corporation could collaborate with Vietnamese organizations in researching and developing new financial products and services. This could foster innovation and create new opportunities for both sides.

On behalf of Guotai Junan, Mr. Huang Bo stated that the company has taken several steps to ensure its competitiveness and survival in the digital age. Guotai Junan maintains its competitiveness and survival in the digital age by investing in technology, enhancing customer experience, transforming employee skills, and collaborating with technology companies.

Guotai Junan, CEO of Guotai Securities, observes that foreign capital inflows into the Vietnamese stock market remain modest, therefore improving these inflows is crucial for the market's development.

Mr. Huang Bo - CEO of Guotai Junan Securities.

Accordingly, he believes that the Vietnamese stock market should enhance transparency and information. Improving the quality of information disclosed about listed companies, investment opportunities, and trading processes will help increase the confidence of foreign investors. At the same time, increased transparency in risk management and compliance with legal regulations is also necessary.

Furthermore, Mr. Huang Bo suggested that Vietnam also needs to improve its investment environment and risk management. For foreign investors, the investment environment and risk management are considered crucial factors.

Furthermore, it is necessary to develop new products and services, diversifying securities products and services to attract foreign capital into the market. The development of derivative products, ETFs (exchange-traded funds), and other institutional products can provide new investment opportunities and attract the attention of foreign investors.

“These solutions could contribute to better growth of the Vietnamese stock market and an early upgrade from frontier to emerging market status. However, in my opinion, concerted efforts from all stakeholders, including the government, regulatory agencies, businesses, and investors, are needed to implement these solutions effectively,” said a representative from Guotai Junan Securities .

Source: https://www.nguoiduatin.vn/nganh-chung-khoan-viet-don-song-dong-von-ngoai-a668686.html