The stock market remains firmly on the growth path in the long term because of the country’s consistently strong economic growth, big foreign investment, attractive valuations, and the high earnings growth expected for listed firms, according to VinaCapital Group.

Speaking at a press conference held on the sidelines of its 2022 investor conference, Andy Ho, VinaCapital’s chief investment officer, said Viet Nam’s GDP was forecast to grow at 8 per cent this year and 6 per cent in 2023, among the highest in the region.

The economy was in a very good growth cycle and could grow by 6-7 per cent a year in the long term supported by booming exports, FDI, domestic consumption, and others, he said.

Good economic growth would propel the earnings of listed companies, he pointed out.

Nguyen Hoai Thu, managing director and head of investment, said Viet Nam’s stock market had an attractive valuation compared to its regional peers, while earnings growth for listed companies was expected to be 19.1 per cent in 2023, much higher than for regional peers.

“Despite headwinds in the short term such as global risks, monetary tightening, economic slowdown, and regulatory tightening, it is a good time to hold stocks,” she said.

Ho said, “The stock market’s volatility has generated headlines and created a degree of uncertainty among some investors, but it is important to keep in mind that listed and private Vietnamese companies continue to perform well on the back of robust domestic demand.

“The companies we invest in, particularly those in the consumer discretionary sector, are generating solid earnings, some well-above pre-COVID levels, and with the continued strength of the economy, we are confident these companies are well-positioned to continue to grow and generate solid returns for our investors in the long term.”

Thu said foreign investors had withdrawn money since last year including US$57 million in the first nine months of this year.

Foreign cash flows could return when the dollar stops gaining so much, she said.

A recession would hit profit growth in developed markets, causing long-term investors to then return to markets such as Viet Nam, she said.

“Currently, foreign investors have not withdrawn money from our funds. In fact, there are investors from Asian [economies] such as Hong Kong, Taiwan and Korea who are interested in investing in the funds managed by us.”

Being held from October 5 to 7, the 2022 VinaCapital Investor Conference has attracted nearly 100 attendees from around the world.

It features several tracks tailored to specific sectors and includes presentations by senior executives from a range of companies like Digiworld, VietJet Air, Hung Thinh Land, ZaloPay, Tiki, Homebase, and Realbox/FINA.

Guests will be taken to the Saigon Hi-Tech Park, site of the FPT Software Campus, and on a tour to discover HCM City’s transformation.

Key topics to be covered include the economic and stock market outlook, Viet Nam’s compelling FDI story, VinaCapital fund performance updates, clean energy and energy security, sustainable infrastructure development, ESG investing, digitisation, venture capital, and real estate.

Don Lam, CEO and founding partner of VinaCapital Group, said: “It’s been three years since we were last able to host an in-person investor conference, and as we all know, the world has changed greatly since then. But one thing that hasn’t changed is Viet Nam’s investment attractiveness.

“Few countries have emerged from the global pandemic as strong as Viet Nam has, and we are excited for our guests to see and hear that the opportunities for investing here are as abundant as ever.”

Brook Taylor, CEO – asset management at VinaCapital, said, “VinaCapital funds have ranked as the top performers in their categories in Viet Nam.

“We are delighted to once again be able to showcase the full range of investment vehicles VinaCapital offers investors, foreign or Vietnamese, institutional or retail, and enable them to participate in this dynamic country’s continued economic growth.” — VNS