Why is it good time to invest in the Vietnamese stock market?

This article goes to details to explain the reason why it’s a good time for investors to put their money in the Vietnamese stock market

  1. World Economic Situation and Prospects
    – The trade war and
    This article is written when some negative consequences of the trade war between China and U.S  have being affected the world’s economy, especially the Chinese economy. However, every coin has two sides, the trade war can damage the Chinese economy, it is also able to bring prosperous opportunities to other countries. Vietnam is one of those countries. In August 2018, a province of Vietnam, named Quang Ninh, its location near the border between Vietnam and China. The province was visited by more than 70 Japanese businesses seeking investment and business opportunities in the northern province in many sectors such as electronics, heavy industry, finance, property, garments, and textiles.  A representative of the Quang Ninh Investment Promotion Centre said  “these Japanese firms have been operating in China. However, they want to expand their investment markets out of China to shun risks caused by the nation’s rising production costs and by the US-China trade war, which is making it hard for Japanese firms to export their products to the US from China”
  2. Vietnam’s economy and prospects
    Almost reports investigating Vietnam’s economy often remind the reform in 1986 named Doi Moi as the biggest changes of the Vietnamese Communist Party’s idealistic politics in orientating the operation of the national economy. During Doi Moi innovation, Vietnam government changed the economic law to facilitate private businesses developing. On the other hand, the government also established government-owned corporations to control strategic industry such as financials, energy, telecommunication, marine, etc. Private businesses expanded with an incredible growth and contributed an increasingly large portion of the GDP. However many of those giant government-owned corporations operated inefficiently, some of them evenly brought huge debts to the nation because of weakening governance and corruption.
    In recent years the Vietnamese government enacted many decrees and executing strongly them to enhance the effective management of those government-owned corporations. They did not only modified managing policies and replacing managers but also investigated top officers relating to corruption and violation evenly touching some hard political issues.
    Along with that purpose and in order to decrease the direct effects of government to markets,  the government is planning to public those corporations and sell their shares out the capital market. It gives other investors, especially for foreign investors, they have opportunities to invest in companies dominating markets such as Vinamilk, Sabeco,
    Changing law positively to foreign investors
    – get over China to be the most attractive FDI in the world.
    – Vietnam is ready and preparing to receive foreign capital flows
  3. Valuation is proper
  4. the advantage to other south earthen Asian.
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