The situation of Vietnam's stock market is not worrying.

Mr. Petri Deryng - head of PYN Elite Fund has just given positive expectations about the Vietnamese stock market, despite the ongoing adjustment period.

The manager of PYN Elite Fund said that after Donald Trump's victory in the recent US presidential election, emerging markets have experienced unwanted fluctuations, recording the third consecutive week of capital outflows from these markets.

Many emerging market investors are concerned that Mr Trump’s proposed tariffs will slow global trade growth in developing economies. At the same time, expectations of rising inflation due to tariffs have dampened hopes of interest rate cuts, causing Asian currencies to weaken against the US dollar.

For a fast-growing economy like Vietnam, instability can be a threat, but at the same time, important positive developments are also taking place and the Vietnamese stock market is largely influenced by businesses that depend on domestic demand, said Mr. Petri Deryng.

The Finnish investment fund owner also assessed that the Vietnamese Government is accelerating its efforts to promote economic growth. The economic policy of the current leadership team is more focused on economic reform with many important decisions having been made.

Although the tariff policy is likely to affect the growth of some foreign-invested (FDI) exporting companies in Vietnam, these companies are not listed on the stock market. Slowing export growth may affect Vietnam's economic growth rate, but strong domestic demand will balance it out, helping Vietnam's GDP maintain a growth rate of 6-7% in 2025. PYN Elite Fund also assessed that FDI exporting enterprises do not use capital from the Vietnamese banking system, and strong domestic demand will push domestic banks to achieve impressive business results next year.

The head of PYN Elite Fund assessed that the profits of listed Vietnamese enterprises are expected to grow by about 20% in 2024 and maintain the same level in 2025. “Before the recent correction, the stock market was reasonably valued with a projected P/E of 10 times in 2025. Although the recent corrections are disappointing, the situation is not worrying,” Mr. Petri Deryng affirmed. The current market has created an opportunity for the fund to take advantage of fluctuations and restructure its investment portfolio.

VN-Index has just had 2 consecutive increasing sessions.

On the stock market, after a prolonged correction, VN-Index has just recorded 2 consecutive sessions of positive gains. Each session increased by more than 11 points, pushing the VN-Index to 1,228 points (closing session on November 21, 2024).

Source: https://baodautu.vn/tinh-hinh-thi-truong-chung-khoan-viet-nam-khong-dang-lo-ngai-d230630.html