Viet Nam listed among top 5 fastest growing market

A bright economic outlook and strong foreign capital inflows have made Viet Nam's financial market among the five best performing markets in the world, a press conference held by the State Securities Commission announced on Wednesday. - Photo anninhthudo.vn

The benchmark VN-Index has increased 13.8 per cent since the beginning of this year. Total market capitalisation reached VND1.59 trillion (US$71.3 billion), or equivalent to 38 per cent of the country's GDP, higher than the previous ratio of 34 per cent of GDP seen last year.

Liquidity has improved with daily trading value touching VND6.2 billion ($278 million) on the two exchanges, a year-on-year increase of 25 per cent, of which trading in stocks rose 16 per cent and trading in bonds climbed 34 per cent.

Overseas investors have poured a net value of $772 million into the local stock market in August, a rise of 350 per cent over the same period of last year, bringing the total value of foreign investment portfolios to $16 billion.

Foreign investors have been net buyers here since 2005.

"The VN-Index returned to its March 2008 peak while market capitalisation also reached the highest level in the past six years, the commission's chairman Vu Bang said.

"Viet Nam's stock market is among the five fastest growing markets in the world and the second best performer in Southeast Asia in the second quarter."

In a July report, the World Bank revised down its estimate for Viet Nam's GDP growth for this year to 6 per cent from the previous 6.2 per cent and maintained the country's positive medium term outlook.

Bang said the new Government has supported enterprises and improved the business environment.

The trade surplus reached $1.8 billion in the first seven months of this year. Bank credits have expanded 8.54 per cent during the period. Registered foreign direct investment (FDI) has risen 46.9 per cent year-on-year, hitting $12.9 billion.

Capital raising through the stock market has increased 81 per cent during January-July, taking VND254.4 trillion.

Sales of State holdings in State-owned enterprises have attracted attention with 79 auctions in the first seven months, collecting VND7.2 trillion for the State Budget.

Vu Bang said the commission was making efforts to promote Viet Nam's stock market from a frontier to an emerging market.