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Feb 18, 2017 / 10:44

Trends for investment flows predicted in 2017

In the first month of this year, Vietnam`s economy recorded a high growth of stock market, hitting a top increase of gold price and an abundant supply in all segments of the real estate market.

They have represented the optimistic signals of investment channels in Vietnam in early months of 2017.
 
Illustrative image
Illustrative image
Beware of gold market
Nearly a month after the Lunar New Year (Tet) holidays, the domestic gold price has continued to increase strongly with many heights.
According to economic experts, citizens and investors should be careful in investing in gold in 2017 because the price of this precious metal will be affected by a lot of risks from the operating policies of the large economies such as the US.
Besides, Dr. Nguyen Tri Hieu, a financial and bank expert, said that domestic gold price remains a distance in the comparison to the world price.
"Vietnam's gold price is kept a long distance to the world's peak price. Therefore, investing in gold is very risky," he assessed.
 
Investors will pour their capitals into stock market?
The VN Index has increased strongly from the early months of this year to now, hitting a fresh nine-year high of 717 points.
With a continuously rise from the beginning of 2017, the stock market is predicted to be an attractive investment this year, according to economic experts.
According to economic experts, the VN Index continued to set the top growth, being a positive sign of the market. However, in 2017, it is expected that investors just pour the cash flow into businesses of good governance and financial strength.
 
Savings is safe while investing in real estate gets saturated
According to the National Financial Supervisory Commission, the interest rate will be relatively stable and tends to increase by 0.5% in 2017. When other investment channels such as gold and stock market remain a lot of risks, the savings is expected to be safe investment channel for investors with small capital.

 
Photo for illustration
Photo for illustration
According to Dr. Nguyen Tri Hieu, savings interest rate of 6-7% per year is a good and safe return, especially with a sent money under 1 billion VND.
Dr. Ngo Tri Long, former Director of Price Management Institute under the Ministry of Finance, said the international environment will have many changes, the global economic situation will be more difficult to stabilize. "The investment channels of gold, securities, foreign currency and real estate will only draw big investors who truly understand the market" - Mr. Long said.
 
Year of intelligent cash flow
Mr. Pham Hong Hai - CEO of HSBC Vietnam, said, 2017 will see many changes and challenges for newly-emerging markets, including Vietnam.
After the US president’s election, the world’s first economy is expected to continue to grow strongly if its new government implements tax cuts and increases investment in infrastructure. The FED is predicted to raise interest rates. The US dollar is expected to  to be higher against the currencies of newly- emerging markets.
Moreover, the world economy and world financial market will see more volatility as they will have to face many risks in the future, he added.