Hanoi (VNA) – The Director of Indochina Capital Fund (ICF) said while the recent declining stock market has negatively impacted on the fund, it has also created bigger opportunities for the company to continue investing in Vietnam .
ICF Director Thomas Ngo has announced that the company will invest 200 million USD in private Vietnamese companies who are facing difficulties in mobilising capital due to sharp falls in the stock market.
He said that another area for possible investment are companies listing shares with a low Price-Earnings (P/E) ratio.
A managing director of a HCM City-based foreign investment fund also agreed that while it may be a difficult period for investors, it also brings new opportunities to those in a firm position.
When targeting potential companies, even newly-established ones, the market’s adverse developments do not affect his fund’s plans, he said.
He also revealed his fund will continue to buy the number of shares set out in its initial plan.
Dragon Capital Investment Fund Director Dominic Scriven also affirmed his fund’s investment plans will not change because it is a medium- and long-term investor.
While speaking of the fund’s recent losses, Scriven said he was optimistic about future business in the country.
“If I have the money, I will buy shares at this time,” he said.
The above-mentioned managers’ statements indicated that the rumours that foreign investors are withdrawing capital from the Vietnamese stock market were quite groundless. An official from the State Securities Commission (SSC), Nguyen Son, Head of the Vietnam Securities Market Development Department, also denied the information and warned investors against listening to a rumour that could harm their interests.
According to the Securities Depository Centre, recent foreign investment transactions have remained high.
By early March, 600 foreign organisations and over 9,200 individuals were granted transaction codes, up 5 percent and 2.4 percent respectively, over the previous month.
“In an overall view, difficulties only come in the short term but in the long term, the stock market will stay on track with its growing trend,” Finance Minister Vu Van Ninh told the press on the sidelines of the National Assembly Standing Committee’s session.
“Investors should stay calm to make right investment decisions,” he said.
After a series of Government’s and the SSC’s measures took effect, the stock market has showed signs of recovery in recent trading sessions, with indexes increasing in both Ho Chi Minh City and Hanoi bourses.-Enditem
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