The Vietnamese stock market is very promising in the eyes of foreign investors. However, the barriers in liquidity and transaction fees have discouraged them.

The upgrade is likely to widen Vietnam’s access to large funds allocated according to the FTSE Emerging Index, including Vanguard FTSE Emerging Market ETF.

The stock market these days is beset with anxiety and cautiousness. Investors cannot predict how the stock prices while foreign investors sell more than buy.

The business results of listed companies in the first nine months of the year were fairly positive. But the unpredictability of the negotiations related to the US-China trade still exists.

Though the index has increased slightly, the stock market remains inactive as a lot of individual investors have incurred losses and many brokers have given up their jobs.

Just over the last two years, about 10 billion dollars from the region have been poured into Vietnam’s leading corporations.

This time, Vietnam’s stock market responded differently compared to the previous two rate cuts with minimal impacts.

The Vietnamese derivatives market has picked up over the last three weeks, with total trading volume nearly reaching the total figure recorded in September.

Foreign investors have made a net purchase of VND15.2 trillion worth of government bonds so far this year, according to SSI Retail Research.

South Korean invested securities companies are putting pressure on Vietnamese companies, competing in terms of service quality, number of branches and the possibility of providing loans for margin trading.

A list of 755 enterprises failing to register to list on the stock market after equitisation will soon be announced.

The market sentiment will remain lateral in September weighed down by global economic and political tensions while trading quiet amid speculations of Q3 corporate earnings.

As liquidity has been falling and investors have taken losses, buying and selling activity has slowed.

Taiwanese investors are making their way into Vietnam’s stock arena, lured in by a fast-growing economy and a more mature financial market. However, some hurdles need to be removed to attract more capital. 

Vietnam’s stock market has been evaluated as a bright spot in the region in terms of growth speed and foreign capital absorption for years, according to Chairman of the State Securities Commission (SSC) Tran Van Dung.

Vietcombank is offering to sell 6.5 percent of shares to foreign investors this year in a plan to raise charter capital.

Vietnamese enterprises are in dire need of capital to expand production and business, but the current development of the capital market cannot meet this demand. 

A number of securities companies now are earning big money from corporate bonds.

Many big foreign investors are stepping up the sale of shares of leading enterprises in their business fields, raising concern about the departure of foreign capital.

VietNamNet Bridge - Many commercial banks plan to enter the stock market in 2019 as the Prime Minister has instructed banks to list shares by 2020.