04.01.2022, 13:38

What the Vietnamese stock market looks like in 2022?

What the Vietnamese stock market looks like in 2022?

2021 presented a bonanza year for Vietnam’s stock market as its benchmark VN-Index rose nearly 36%, making it into the top 10 benchmark indexes in the world, the VOV reported.

The market grew tremendously, setting new records in terms of both indexes, trading value, and the number of new participants despite the lingering outbreak.

The data showed, by the end of 2021, VN-Index hit close to 1,500 points, up 35.4% compared to 2020. The market’s capitalization was VND7.729 trillion, marking a year-on-year rise of 46% and being equivalent to 122.8% of the 2020 GDP and 92% of the 2021 GDP.

Related: Investment Strategies for New Investors in Vietnam

Many stocks such as SSI, VIX, SHS, ART, APS, HCM, VCI, and TVC attracted huge cash flow and simultaneously recorded a sharp increase, while banking shares witnessed positive movements with many gainers, including STB, MSB, VPB, TCB, MBB, and SSB.

The impressive growth in 2021 indicates the stock market is an investment channel that attracts special attention from domestic and foreign investors and is also an effective capital mobilization channel for businesses, said Tran Van Dung, chairman of the State Securities Commission of Vietnam.

He said there are positive signs for the domestic stock market to grow further in 2022 despite unpredictable market developments, including inflationary pressure and difficulties in business production.

According to the expert, the stock market is likely to attract huge cash flows thanks to a stable interest rate policy adopted by the State Bank and an economic recovery program to be implemented by the Government in 2022-2023.

In addition, the market has great development potential when the Government is accelerating the equitization of State-owned enterprises, while the corporate bond market, although in its infancy, will be a great lucrative market in the coming time.

Ho Chi Minh city stock exchange

Experts of Saigon – Hanoi Securities Joint Stock Company (SHS) shared the view, saying traders remain optimistic about the upward trend of the securities market in the future, particularly as the derivatives market has seen positive growth.

However, whether the stock market will continue to boom this year largely depends on the developments of the COVID-19 outbreak and businesses’ operations for 2021 to be announced shortly in early 2022.

Professionals from the Vietcombank Securities Company (VCBS) therefore advised investors to remain cautious about huge investment disbursement and wait for the market trend to become clearer, especially due to the new signals of cash flow in the stock market, according to VOV.

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