Dragon Capital’s Vietnam enterprise investments limited (VEIL) reported a net asset value (NAV) growth of 12.5 percent to US$1,747.8 billion in the first two months of the year. NAV per fund certificate (CCQ) of VEIL stood at $7.94 by February 27.
By the end of February, VN-Index rose 13.7 percent against December last year
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VinaCapital Vietnam Opportunity Fund (VOF) under the management of VinaCapital also posted an asset growth in the first two months.
By February 23, VOF’s NAV stood at $1.18 billion, making its NAV per CCQ at $5.96, up 8 percent against December last year.
PYN Elite Fund (non-UCITS) also reported a 2.45 per cent NAV rise in the first two months. The fund also posted a 21 percent NAV growth last year.
The fund’s investment portfolio included 12 shares of MWG (accounting for 14.3 percent of the fund’s NAV), CII (7.9 percent) and HBC (7.2 percent).
By the end of February, VN-Index rose 13.7 percent against December last year and experts forecast the market will continue growing in the remaining months of the year.
Hoang Viet Phuong from the Saigon Securities Incorporation forecast that Vietnam’s stock market would grow significantly this year as only initial public offering (IPO) and listing of State-owned enterprises, if being conducted as schedules, could help the market rise by some 20 percent.
Foreign capital flow, which was behind the strong rise of the Vietnam stock market in 2017, is expected to help the VN-Index reach new highs in 2018. Some securities firms predicted the growth this year could be equal to last year, helping VN-Index reach 1,200 points at the end of the year.
The analysts believe that the cash flow from overseas will continue rising this year if the dong/dollar exchange rate is not adjusted by more than 2 percent and the inflation rate is at 4 percent.
An analyst said that foreign investors rushed to buy stocks recently because of the expectation of the Vietnamese market being upgraded from frontier to emerging, which may occur in 2018.
According to the State Securities Commission (SSC), foreign capital inflows to Vietnam’s stock market reached a 10-year high in 2017, making it the third fastest-growing market globally.
Capitalization of Vietnam’s securities market last year skyrocketed by 80.5 percent to VND3.5 quadrillion (US$154.18 billion), equal to 70.2 percent of GDP and surpassed the 70 percent target set for 2020. The numbers for other regional countries of Indonesia, Philippines and Singapore were only 20, 28 and 29 percent, respectively.
Liquidity of Vietnam’s stock markets last year also surged sharply by 66 percent from VND3 trillion to VND5 trillion per session while VN-Index and HNX-Index soared by 48 and 46 per cent, the highest level in the past decade.
SSC reported that foreign investors net purchased VND46.7 trillion (US$2.05 billion) worth of shares in Vietnam’s stock markets last year. They sped up buying in the two final months of 2017 in the local equity market, bringing the full-year net purchase to VND28 trillion (US$1.23 billion). In addition, they net bought another VND18.7 trillion (US$824 million) worth of local bonds.
Their portfolios were valued at US$32.9 billion at end-2017, increasing 90 percent from a year earlier, the commission added.
