Dominic Scriven - Chairman, Dragon Capital
Divergent forecasts from reputable institutions such as the World Bank and Fitch Ratings underscore the complexities inherent in deciphering the multifaceted forces influencing macroeconomic variables.
For those who entered the stock market in 2022, it was indeed a challenging year. The corporate bond market, especially towards the end of the preceding year, presented considerable difficulties.
Despite increasing interest rates, the US Federal Reserve has consistently employed an incremental approach. This approach has translated into favourable signals for financial markets, evident in the commendable performance of global stock markets, including Vietnam, which have surged by 15-28 per cent.
Vietnam has maintained stable and well-regulated inflation rates in the preceding as well as the ongoing year. The collaborative initiatives undertaken by the State Bank of Vietnam and the Ministry of Finance to cultivate a favourable financial environment have contributed to partial recovery from the losses endured in the preceding year.
However, the prospects of a “very robust” recovery anticipated by the World Bank and some recent analysts for the forthcoming year seem somewhat overly optimistic, as seen by the challenges facing key global economic drivers such as the United States, China, Europe, Japan, and Africa.
In this context, the advisory role exercised by investment institutions, catering to clients, and the broader investor community are pivotal, considering the importance of vigilantly assessing risks when making financial investments.
Trinh Quynh Giao - CEO, PVI Asset Management
Economic trends tend to operate in cycles, with recessions and growth phases having historically repeated themselves. My team doesn’t merely gauge success through monthly or annual growth percentages. Success for us is about deep, strategic financial planning.
This approach isn’t solely for corporations; individuals should focus on a similar approach. Every significant life decision, whether it’s purchasing a home or planning a child’s overseas education, needs its financial blueprint.
Tailored financial strategies are of utmost importance and different phases demand specific profit goals. An insurance enterprise, for instance, requires high liquidity levels. A pivotal aspect of financial health is prudent debt asset management. For an individual, it starts with understanding the present debt and forthcoming expenses. Only after addressing these obligations should one delve into investments and profits. This delineation aids in optimally structuring assets and guiding financial futures.
During bond crises when saving interest rates rocketed, astute investors found silver linings. When interest rates peaked at 12 per cent, we recalibrated, pushing our deposits to 70 per cent, a sharp increase from the usual 50 per cent.
In my perspective, 70 per cent of investment profits stem from the strategic reshuffling of one’s asset portfolio. The remaining 30 per cent is about the technicalities and choosing the right stock or sector. Monitoring macroeconomic dynamics is crucial to allocating assets wisely.
Dau Thi Kim Nhung - Retail marketing director Vietcombank
The segment of priority customers or high-end customers in the Vietnam market is forecasted to have annual average growth at 10-12 per cent from now to 2030. It is expected that Vietnam will have more than 10 million people in this segment by 2025.
At many commercial banks, this group of customers contributes 40 per cent of the banks’ income despite accounting for less than 1 per cent in number. Therefore, banks are well aware of the role and importance of priority customers, even some large banks have identified this segment as a growth engine, and now have devoted power forces to invest comprehensively in this segment.
Vietcombank is one of the pioneer banks in implementing this service, which debuted for the first time in 2019 with the Vietcombank Priority brand.
We focus on investing from technology infrastructure, high-quality personnel, and comprehensive services to specialised transaction location and space to match the value generated by our Priority customers. With outstanding financial solutions and valuable experiences, Vietcombank Priority has attracted hundreds of thousands of loyal customers.
In addition to focusing on financial transactions, and advising on investment opportunities for customers, Vietcombank Priority is also designed to bring emotional experiences, tailored to each customer’s personal style. We have a dedicated service model, a specialist trading space, and comprehensive product and service packages with attractive interest rate/banking fee incentives.
These include the Vietcombank Priority Lounge premium airport lounge, and Vietcombank Visa Signature credit card and many other high-end card lines with features such as unlimited cashback, premium dining, entertainment, education, travel, and insurance for the whole family.
Le Duc Khanh - Director of Analysis VPS Securities Company
Amid low interest rates, unattractive deposit yields, and stable foreign exchange rates, equities have become more appealing. Following a dip in investor confidence, the bond market is rebounding, but full recovery is pending.
Global stock markets are buoyant, including in Vietnam. Inflows since May have powered growth, drawing billions in sessions. Domestic investor accounts reached 7.5 million by July-end, with 151,000 new accounts in July alone.
Challenges persist in H1 corporate profit recovery, yet the stock market responds strongly due to limited investment options. This pattern mirrors the market’s forward-looking nature.
Prospects hinge on monetary policy, policy shifts, economic rebound, and valuation trends. The 1,200 VN-Index milestone is within 1,280 to 1,300 points – a resistance zone marked by volatility. Consolidation periods balance market ascent.
Strong sectors amid this rise are energy, tech, infrastructure beneficiaries, retail, and utilities. Careful stock selection using valuation metrics is vital for prudent investment. Vigilance, flexibility, and risk management are crucial.
Nguyen Thi Phuong Lam - Head of Analysis and Investment Consulting, Viet Dragon Securities Corporation
According to our recent statistics, the growth of listed companies representing the economic sector is much lower compared with the GDP growth of the Vietnamese economy.
Most industries show signs of bottoming in the fourth quarter of 2022 and the first quarter of 2023. However, there is a strong division between industries. Some industries post profit growth, outperforming the general picture of the market, such as financial services, industrial parks, and life insurance.
These industries recorded a good recovery rate in the first six months of the year. On the contrary, a number of other industries have not seen any clear signs of recovery.
Slower-than-expected recovery of these industries is in line with shrinking consumer confidence. When looking at the private equity index among these industry groups, we see a huge divergence, as most are trading at a much higher private equity, surpassing the regular trading range in the last three years and even much higher than the median private equity of these industries.
It indicates that investors are paying a high private equity for industry groups because of future earnings growth expectations for these sectors. This is especially true after government agencies offer a variety of policies and support packages for the economy.
Pham Thi Thanh - Deputy director of Retail Banking BIDV
Banks are deemed to be providers of basic and traditional products such as credit cards, channels for depositing or lending capital for businesses, or liquidity. However, in terms of providing services to customers with large assets, BIDV will focus on the strategy of providing total asset management services to bring value to customers.
Indeed, banks possess unique selling points compared to securities companies or fund management companies. For high-end customers, the bank will support them in accessing bonds, open-end fund certificates, and personal trust portfolio management services.
Deep-pocketed customers not only have demand for traditional products but also for investment channels in the securities market, bonds, stocks, and real estate. The bank plays the role of an advisor and consultant, advising customers on the most optimal plan to preserve and increase assets in a sustainable way.