Vietnamese stock funds posted negative average returns in 2022 due to Vietnamese government measures to combat stock manipulation and anti-corruption. The Vietnamese stock market was widely affected in many industries. especially real estate and commercial banks
Including concerns from the economic recession. That got into the mix, causing the investment climate to be pretty bad.
returns begin to recover
information from the company Morningstar Research (Thailand) found that Vietnam stock funds have a downward trend throughout 2022, making it one of the funds with the most negative average returns in 2022 at -32.9%.
but anyway Thai investors continue to show confidence in investing in Vietnam. As a group of funds with the highest net inflows per year with a value of 22 billion baht
While in the first quarter of 2023, Vietnamese equity funds had net inflows of 2,134 million baht, ranking 1 of the top 5 among foreign funds with the highest net inflows. with positive First Quarter returns to date (YTD), the fund’s average return is 3.5% (as at 31 May 2023).
For Vietnam stock funds with the highest returns, led by DAOL-VIETGROWTH. From asset management companies (DAO Asset Management), the return is 7.99%, followed by B-VIETNAMRMF fund, B-VIETNAM fund of Bualuang Asset Management, the return is 7.79%.
and 6.57% respectively, followed by TISCO Asset Management’s TVIETNAM fund with a return of 6.51% and PRINCIPAL VNEQ-X fund by Principal Asset Management Co., Ltd. with a return of 6.25% (see table).
There are risks in the short term
“Pot Harinsut” CEO One Asset Management Co, Ltd (ONEAM) said investing in Vietnam this year still has some worrying factors. Whether it is a matter of credit for the real estate sector Including short term economic issues
Therefore, investment perspective in the Vietnamese stock market For this year, be neutral or maintain investment pressure. Therefore, it might not be wise to increase investment pressure in Vietnam much. But in the long run, of course, the Vietnam stock market is another interesting market. Because there is still a lot of growth in the future, but in the short term, as I said, there are still risks that must be watched.
“This year, we will see that investor interest has shifted to the Northeast Asian stock markets, namely the Japanese stock market, the Chinese stock market, the South Korean stock market. and the Taiwan stock market Which became the Asian stock market this year we recommend investing more than Vietnamese and Thai stocks. “
long term investment opportunity
“Warorit Chirachon” Executive Director, Investment Analysis Group SCB Asset Management Co, Ltd (SCBAM) said in the medium to long term, She still has a positive view on investment in the Vietnam stock market. By looking at positive factors of 1. Vietnam is an underdeveloped country. But with a relatively high GDP growth rate of 5-7% per year, GDP is expected to be around 6% this year and 7% in 2024.
and 2. the structure of the population with a relatively low average age causing the revenue structure to continue to grow which, when people have a good income, also makes matters of domestic consumption good
“But if you look at the short term like this year If you look at the Vietnamese stock price, last year was quite bad, down about 40%. Compared to global stock markets, it is considered the worst performing stock market. But this year has started to see some recovery in the market. Because the market has already received a lot of negative news. But what hasn’t fully recovered is the pressure factor of delinquency concerns.
related to the real estate sector and the picture of the slowing economy That may make Vietnam, a country with large exports. affected because it exports less So, various pressure factors will have to wait for time to develop.”
However, there are still positive factors this year, for example, the Vietnamese government tends to announce public investment policies, namely investments in infrastructure. That will help stimulate economic development and 2. New land reform legislation.
In order to solve various real estate construction problems, the stock had previously been dropped, partly because of the slipperiness of this issue and if this issue has a better direction, the investment climate (sentiment) should be better.
“In the short term, there are still concerns. but long term investment He believes that investment opportunities belong to people who dare to invest in monsoon days. A day that encounters risks and uncertainty, so now if investors believe that Vietnam will recover well in the future It is a good point to buy and gradually accumulate,” said Warorit.
