Recently, the cash flow has poured massively into the stock, gold, and real estate markets. Investors call this phenomenon cheap money, but it also raises concerns over inflation for the economy.

At the National Assembly last week, there were worrisome arguments about the structure of the budget revenue based on the stock market bubble and the real estate sector. 

Cash keeps flowing into the stock market, including during trading sessions when the VN Index falls.

After 25 years of development, the Vietnamese stock market is playing a more important role in attracting capital, supporting the commercial banking system. 

The situation changed in a positive direction when the stock market and and stock prices went up. This will enable divestment from SOEs and the equitization process to take place more easily.

The majority of foreign-invested enterprises listed on Vietnam's stock market either posted lower after-tax profits or losses in 2020 due to the impact of the COVID-19.

The Vietnamese stock market’s valuation is equivalent to 18.2 times 2021’s profit and 14.3 times 2022’s profit forecast, said Fiin Trade, showing that the profit prospects for 2021 are reflected in share prices.

Billions of dollars are pouring into the stock market each trading session as the prices of some stocks have reached historic peaks.

In the past 10 months, the number of newly opened securities accounts reached nearly 1.1 million, higher than the total number of new accounts in the previous four years.

The share price increases last week helped rich businesspeople become even richer.

Liquidity on Vietnam’s stock market hit a new record on November 3 with nearly 52 trillion VND (more than 2.2 billion USD) worth of shares traded on all bourses.

The positive signs in the stock market recently have helped Vietnamese billionaires, including Nguyen Thi Phuong Thao, become richer.

Pham Nhat Vuong continues setting new records, while Le Phuoc Vu has gained a new high in his business career.

Commercial banks have reported profits of trillions of dong in the first nine months of the year, helping their owners get richer while other businesses remain in distress because of the impact of Covid-19.

Accordingly, at the end of the session, the index picked up 31.39 points to 1,423.02 points. Previously, the highest level of VN-Index ever set was 1,420 points, which was recorded in early July.

The Unlisted Public Company Market (UPCoM) is increasingly attracting investors thanks to the potential of its stocks.

Vingroup, the company of Vietnam’s richest man, billionaire Pham Nhat Vuong, has expanded investment in major projects in the fields of electric cars and technology but has not neglected its traditional businesses.

Vietnam’s economy remains heavily dependent on banks’ capital mobilization, whereas credit risks are always lurking, especially during times of economic crisis, as is the case now.

Revenue of the whole non-life insurance market recorded modest growth this year, but most insurance stocks on the stock market rose sharply.

Even though foreign investors have become net sellers on the stock market, they have fled to bonds and are waiting for future investment opportunities, said Tran Van Dung, Chairman of the State Securities Commission of Vietnam (SSC).