Mr. Michael Kokalari, Chief Economist of VinaCapital investment fund, in a recently released report, said that the excitement of the Vietnamese stock market has developed dramatically in recent years. This is reflected in the increase in market capitalization from 30% to 90% of GDP, the number of companies with billion USD capitalization increased from 10 in 2015 to 50 at present.
The number of investors participating in the market also fluctuated strongly from last year to now. In the first half of 2021 alone, there are more new investor accounts than in 2019 and 2020 combined. This phenomenon is partly caused by the reduction of about 1.5% of one-year bank deposit interest rates, leading people to look for alternative investment channels when their deposits mature.
According to this expert, Vietnamese investors prioritize investment in real estate, gold and then securities. However, the real estate market has been declining recently for a number of reasons, including the slow progress of construction due to the epidemic, while gold has also lost its attractiveness as the buying and selling gap has narrowed since last year and the price in The country is also 17% higher than the world.
"In the context that there are not many other more attractive investment solutions, more and more domestic savers are turning to securities," said Michael Kokalari.
This expert said that the participation rate of individual investors is still very low compared to the population size, but their excitement is a positive signal about the development trend of Vietnam's stock market. Currently, the number of people with personal securities trading accounts accounts for 3% of the population, equivalent to the percentage of Taiwanese people who had securities accounts 35 years ago. The government aims to increase the proportion of people participating in securities to 5% by 2025 and 10% by 2030. This is a achievable target compared to the market entry process of individual investors in Taiwan. Loan in the period of economic development similar to Vietnam today.
"Vietnam is applying the "East Asian development model", the model that Taiwan and other countries in the region used to prosper and lead to a rapid growth of the stock market. I believe Vietnamese stocks are also in the early stages of a decades-long growth process," said Mr. Michael Kokalari.
He predicts that the wave of individual investors into the stock market will continue in the coming decades. The market regulator has recently upgraded the trading system to meet investment needs and solve order congestion.
The system developed by the Korea Stock Exchange is also being tested to support short-selling, T+0. In addition, modern securities market creation services such as fund management companies, corporate pension funds... are also being arranged to meet the fast growth rate.
According to Vnexpress
