Foreign investor net buying reaches $208 mln since early April

While domestic individual investors maintained net selling on the stock market, foreign investors have recorded over VND4,809 billion ($208.3 million) in net buying since early April.

Given market volatility, the figure reflects international investor confidence in Vietnam's stock market, following their net selling of VND82,000 billion ($3.55 million) from the beginning of 2020 to the end of the first quarter this year.

Nguyen Duy Hung, Chairman of SSI Securities, said he believes the trend of "foreigners net buying" has signified an international bullish perspective on the future of Vietnam's economy and stock market. “Singapore, the U.S., and Japan are seeking disbursement opportunities."

VinaCapital experts noted that Vietnam's stock market is at a very reasonable price for long-term investment, with a price-to-earnings (P/E) ratio of 11.5 in 2022, much lower than the five-year average of 14.5.

The fund believed that Vietnam's economy has recovered strongly from the pandemic, with a GDP forecast of 6.5% in 2022. Businesses on Vietnam’s stock market are expected to achieve average profit growth of 20% in 2022.

Given the stock market’s volatility in the short term, investors should remain calm and perceive it as a potential investment opportunity rather than being affected by the crowd, VinaCapital analyst advised.

Petri Deryng, Chairman of Pyn Elite Fund, an €842 million Finnish investment fund, predicted that Vietnam's economy and its listed enterprises would continue to expand strongly in 2022 and 2023.

Vietnamese listed firms would achieve profit growth of 25% in 2022, equivalent to VN-Index's P/E ratio of 13.3. This is an appealing feature amid the global stock markets' downturn, the fund stated.