Vietnam's securities industry welcomes foreign capital flow

If in the period from 2015 and before, foreign securities companies mostly operated in a tentative and exploratory manner, from the beginning of 2017 until now, the Vietnamese stock market has witnessed the strong expansion of companies in this industry from countries in the continent.

Nguoi Dua Tin had an interview with Mr. Kang Moon Kyung - General Director of Mirae Asset Securities Joint Stock Company headquartered in Korea and Mr. Huang Bo - CEO of Guotai Junan Securities headquartered in Hong Kong (China) to learn more about the reasons for investing in Vietnam and the direction to accompany and develop the Vietnamese financial market.

Lucky to join Vietnam

Mr. Kang Moon Kyung shared that the reason the group decided to invest in Vietnam is because of its cost competitiveness, relatively abundant and young workforce, stable political environment and supportive policies of the Government.

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, providing a good opportunity for asset accumulation in the context of improving macroeconomic conditions and potential profit growth of listed enterprises.

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

Mr. Kang Moon Kyung - General Director of Mirae Asset Securities JSC.

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

“By building and promoting partnerships with many countries and international organizations, Vietnam has achieved the political stability needed to attract investment capital. The government has many policies to support foreign investors, and the provision of preferential personal income tax for a number of key sectors has contributed to attracting investment and encouraging business,” said a representative of Guotai Junan Securities.

Regarding growth potential, Mr. Huang Bo assessed that the Vietnamese market is experiencing a period of strong development, associated with stable economic growth, innovation and reform of the financial market. On the other hand, Vietnam is located in the center of Southeast Asia, one of the fastest growing regions in the world. This creates great opportunities for financial investment activities.

“I believe that the stock market in particular and the Vietnamese economy in general are entering a golden period of development in the coming decades. There are many business opportunities in Vietnam, and honestly, we feel lucky to join this market,” said Mr. Huang Bo.

Strategic move to "reap sweet fruit"

To accompany and develop the Vietnamese financial market, Mr. Kang Moon Kyung said 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 the understanding of the market for Vietnamese partners but also helps improve the quality and depth of the industry.

Second, the group can cooperate with Vietnamese organizations in researching and developing new financial products and services. This can promote innovation and create new opportunities for both parties.

On Guotai Junan's side, Mr. Huang Bo said that the company has taken a number of 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 cooperating with technology companies.

Guotai Junan Securities CEO, realized that foreign capital flow into the Vietnamese stock market is still modest, so improving this capital flow is an important issue to promote market development.

Mr. Huang Bo - CEO of Guotai Junan Securities.

Accordingly, he believes that the Vietnamese stock market should increase 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, increasing transparency in risk management and compliance with legal regulations.

In addition, Mr. Huang Bo said that Vietnam also needs to improve its investment environment and risk management. For foreign investors, the investment environment and risk management are considered important factors.

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

“The above solutions can contribute to better growth of the Vietnamese stock market and its early upgrade from frontier to emerging. However, in my opinion, it requires consensus and efforts from relevant parties, including the Government, regulatory agencies, businesses and investors, to effectively implement these solutions,” said a representative of Guotai Junan Securities .

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