Mr. William Gray - Photo: NVCC
Investors wait for Vietnam to enter the emerging market group
As a financial planner, I work directly with expatriates to assist them with wealth management, retirement strategies, inheritance planning and financial protection.
Most of my clients’ investments are focused on overseas markets such as the US, UK and Europe. However, the topic of direct investment in Vietnam is also often mentioned.
When it comes to this, clients are often excited about the growth potential, but at the same time cautious because of the lack of clarity on how to invest effectively in Vietnam as well as the many potential problems that can arise.
Strong GDP growth is not always reflected in the long-term performance of national equity indices. For this reason, my clients typically do not allocate much, if any, of their portfolios to the Vietnamese market. They often use indices such as the FTSE All World or emerging market indices to gain broader exposure to the Southeast Asian region.
Once Vietnam is upgraded to emerging market status by FTSE Russell, this will naturally lead to a higher weighting of Vietnam in investors’ portfolios. Some clients will also invest through active funds such as Dragon Capital and VinaCapital through their Vietnamese banks.
For the SME sector, my clients are often interested in investing in this sector, in sectors such as hotels, technology or import-export. Their concerns often fall into the regulations of business ownership, such as whether they need to involve a local partner or who they should trust to do things like this.
Long-term rentals are another concern, as they question whether the landlord will sell or walk away mid-contract.
Investors also pay attention to building relationships with local authorities and dealing with regulations. Many feel that because they are foreigners, it is difficult for them to find the right approach.
Besides, they also have concerns about capital control, such as if they want to transfer their business, can they take money out of Vietnam?
Although these concerns are not as big of a concern as investors think, they are still common concerns.
Need more interaction with investors
Ho Chi Minh City's vibrant nightlife attracts the foreign community in Vietnam - Photo: QUANG DINH
Although business processes and legal regulations in Vietnam have become increasingly transparent and clear, this information is not always clearly presented in English or other languages. Therefore, foreign investors often have to rely on intermediary companies to act as a bridge.
In my opinion, building a dedicated website in English, providing official information on good business practices in Vietnam, will help investors feel more secure.
In addition, promoting the website and services on public transport such as buses, planes and other visible locations will help create the feeling that the city government is on board and genuinely wants to support investors. This can help alleviate many of the concerns that foreign investors are facing.
In addition, building an official database, certified by competent authorities, of reputable and competent intermediary and consulting companies in areas such as tax consulting, business establishment, visa application, etc. will also help increase investor confidence.
I think that nowadays some intermediary companies in the market tend to exaggerate their skills and experience, leading to negative consequences and perceptions.
Finally, continued close coordination with representative chambers of commerce from countries to listen directly to the concerns of foreign investors and experts, as well as proactively accessing information from the press and other organizations, is essential to ensure that voices are heard.
Foreigners search for information about Ho Chi Minh City after the merger
In the context of Ho Chi Minh City's merger, I believe that the city government is working very hard behind the scenes to navigate this transition as effectively as possible.
Timely information and updates on progress, as well as the challenges and opportunities involved in this context, are always welcome. The more information that is shared about the merger, the more the public can contribute.
Personally, I would like to learn more about the former provinces that have now been merged into Ho Chi Minh City, as well as the industries and resources that are typical of each area. Some press agencies are publishing this information, which is a positive sign.
The more information is made available to the public, the easier it is for the public to identify opportunities and thereby participate more actively in activities, contributing to economic promotion and enhanced cooperation in a new Ho Chi Minh City.
Together "Contribute to the development of industry and trade in Ho Chi Minh City"
Tuoi Tre Newspaper in collaboration with the Department of Industry and Trade of Ho Chi Minh City opened a forum "Proposing ideas for developing industry and trade in Ho Chi Minh City". The forum aims to listen to ideas and solutions from businesses, researchers and people to build and develop industry and trade for the new Ho Chi Minh City, forming a strong urban area in industry - trade - services, with international competitiveness.
Mr. Bui Ta Hoang Vu - Director of the Department of Industry and Trade of Ho Chi Minh City - said that he will respect and listen to every opinion and suggestion from people and businesses to advise the People's Committee of Ho Chi Minh City on breakthrough solutions to develop industry - trade - services.
Readers participating in the forum can send their comments to the editorial office of Tuoi Tre newspaper, 60A Hoang Van Thu, Duc Nhuan ward, Ho Chi Minh City, or send them via email: kinhte@tuoitre.com.vn.
Source: https://tuoitre.vn/them-kenh-tuong-tac-voi-nha-dau-tu-cong-dong-nguoi-nuoc-ngoai-o-tp-hcm-20250801152909578.htm
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