Stocks to become more attractive than bank deposits: VNDirect analyst
Income from the securities market is expected to increase by about 14% in 2023, meaning that stocks would be more attractive than bank deposits, said Tran Khanh Hien, chief analyst at top broker VNDirect Securities.
December is always considered a golden time for investors to review their investment portfolio to prepare for the next stages. However, this year-end is different, according to Hien.
At the recent "Finance Street" talkshow, she said that now not only Vietnam but almost all major economies in the world are under pressure from rising interest rates and tightening financial conditions.
Besides, after a series of incidents in the market, most commercial banks have strengthened their solvency, and financial institutions have consolidated their defensive foundations. Therefore, interbank and deposit interest rates have increased sharply.
"Deposit interest rates of some banks can reach 10% per year. Businesses will have relatively few opportunities to access capital to restructure loans and pay for debt in the short term. In general, our economy will face more difficulties in the year-end and early 2023," Hien noted.

Tran Khanh Hien, chief analyst at VNDirect Securities. Photo courtesy of Business Review
"Under pressure of the above factors, market players are tending to increase their defenses and seek to sell the most liquid assets, including stocks and corporate bonds. This will cause a drop in trading volume as well as scores in the stock market.
"Normally, many large financial institutions choose the last quarter of the year to restructure their portfolios and put their money down for the new year, as companies’ third-quarter and annual business results have somewhat loomed. In the context of increased input interest rates, the securities investment channel will become less attractive. However, this correlation will be broken when the profits of listed firms continue to increase," she argued.
In 2023, although profit growth momentum will weaken, listed companies are expected to post a profit increase of 12 to 14%, Hien said, adding that with this rate of return, income from the stock market will grow about 14%, meaning investing in stocks will become more attractive than depositing money at banks.
In addition, since the beginning of October, foreign investors have actively poured money into the Vietnamese market, with a total net buying value of about VND8 trillion ($324.6 million). This development is in stark contrast to the first half of 2022. Recently, ETF Fubon - one of the major ETFs investing in Vietnam also announced it would raise about VND4 trillion ($162.3 million) to continue investing in the Vietnamese market.
"It proves foreign investors see that Vietnamese stocks have become very cheap and started purchasing," Hien noted.
The VNDirect analyst said that as market liquidity has improved but remains limited, industry waves like previous years are unlikely to occur. However, some industries will benefit from the growth drivers of the economy and public investment disbursement. Besides, difficulties no longer affect aviation-related industries, especially after re-opening of the international tourism market.
"In addition to focusing on industry groups, investors should pay attention to the story of each stock. They can choose tickers of leading companies in an industry, with low risk to interest rate hikes, a strong financial structure, and attractive valuation compared to the three-year average," she recommended.
The Vietnamese stock market has made a strong recovery in recent days, with the VN-Index, which tracks the performance of the Ho Chi Minh Stock Exchange (HoSE), gaining for the fifth consecutive session on Wednesday.
The benchmark closed the Wednesday session at 1,048 points, an increase of 16 points or 1.58%, with more than 1.1 billion shares changing hands for VND17.76 trillion ($720.6 million).
- Read More
Vietnam's Vinafreight expects 47% decline in 2025 profit amid shipping cost slump
Vinafreight, a leading logistics service provider in Vietnam, expects its pre-tax profit to decline by 47% from last year due to a slump in air and sea freight rates.
Companies - Sun, March 30, 2025 | 9:54 am GMT+7
Brazil to import more products from Vietnam: President
Brazil will import more products from Vietnam than other traditional partners in the coming time, said visiting Brazilian President Luiz Inácio Lula da Silva.
Economy - Sun, March 30, 2025 | 8:17 am GMT+7
Vietnam to have 34 cities, provinces, instead of 63: Party chief
Vietnam plans to reduce the number of cities and provinces from the current 63 to 34, as part of a scheme to streamline its administrative apparatus, Party General Secretary To Lam said Friday.
Politics - Sat, March 29, 2025 | 4:18 pm GMT+7
Thailand’s digital ad spending predicted to grow 10% in 2025
Thailand’s online advertising spending in 2025 is forecast to grow 10% to THB35 billion (over $1 billion), based on a gradual rebound of the local economy and intense competition in the digital industry, according to the Digital Advertising Association of Thailand (DAAT).
Southeast Asia - Sat, March 29, 2025 | 3:39 pm GMT+7
US Defence Secretary reaffirms alliance commitment during visit to Philippines
U.S. Secretary of Defence Pete Hegseth reaffirmed Washington’s strong commitment to its alliance with the Philippines during his official visit to the Southeast Asian country on Friday.
Southeast Asia - Sat, March 29, 2025 | 3:32 pm GMT+7
Southern Vietnam province Tra Vinh okays five more wind power projects
Vietnam's southern coastal province of Tra Vinh has granted in-principle approvals for five wind power plant projects, with a total investment of over VND 13.8 trillion ($540 million).
Southeast Asia - Sat, March 29, 2025 | 3:29 pm GMT+7
Vietnam, South Africa eye stronger air logistics links
Vietnam and South Africa are seeking to strengthen air logistics cooperation to meet rising trade and transportation demands.
Southeast Asia - Sat, March 29, 2025 | 3:24 pm GMT+7
Net profit of Vietnam-Singapore Industrial Park nearly doubles in 2024
Vietnam-Singapore Industrial Park J.V. Co., Ltd, or VSIP, the largest industrial park developer in Vietnam, posted VND3.28 trillion ($128.37 million) in net profit in 2024, up nearly 93% year-on-year.
Industrial real estate - Sat, March 29, 2025 | 3:18 pm GMT+7
Trump Organization eyes golf course, hotel projects in Vietnam
A consortium between the Trump Organization and its partner in Vietnam plans multiple investments worth billions of dollars in golf courses, hotels and real estate projects Vietnam, Reuters quoted the consortium’s spokesman as saying.
Real Estate - Sat, March 29, 2025 | 11:06 am GMT+7
Livestock major Dabaco invests in 8.2-hectare dry port in northern Vietnam
Vietnam’s leading livestock firm Dabaco has invested in an 8.2-hectare inland container depot (ICD) in Bac Ninh province, an emerging manufacturing hub in northern Vietnam and home to a Samsung Electronics plant.
Infrastructure - Sat, March 29, 2025 | 10:51 am GMT+7
Phuong Tien Minh appointed CEO of life insurer FWD Vietnam
Hong Kong-headquartered FWD Group Holdings Limited has appointed Phuong Tien Minh as CEO of life insurer FWD Vietnam, effective Thursday, March 27.
Finance - Sat, March 29, 2025 | 10:40 am GMT+7
Vietnam's Deputy PM backs formation of free trade zone in Binh Dinh province
Vietnam’s Deputy Prime Minister Nguyen Chi Dung on Friday expressed his support for an early study of a free trade zone in Phu My Port area, the south-central province of Binh Dinh.
Economy - Sat, March 29, 2025 | 8:25 am GMT+7
Vietnam offers numerous advantages for Skoda Auto's investment: executive
Vietnam offers a range of advantages for investment by Czech automaker Skoda Auto, including its seaport system, logistics infrastructure, and skilled labor, the company’s chairman and CEO Klaus Zellmer said on Thursday.
Industries - Fri, March 28, 2025 | 7:33 pm GMT+7
Vietnam plans to cut import tax for LNG to 2%
Vietnam’s Ministry of Finance is drafting a decree on preferential import tax for some products, including a proposal of 2% tax rate for LNG.
Energy - Fri, March 28, 2025 | 4:31 pm GMT+7
AES’s $2.1 bln LNG power project needs solutions to meet deadline: Vietnam authorities
The 2,250-MW Son My 2 LNG-fired power project, invested by the U.S.'s AES and state-run Petrovietnam subsidiary PV Gas, “needs solutions” to meet its deadline.
Energy - Fri, March 28, 2025 | 4:06 pm GMT+7
Over $9 bln pledged for investment projects in central Vietnam province Binh Dinh
Binh Dinh province on Friday handed over MoUs on investment cooperation, in-principle approvals and investment registration certificates to 62 projects worth over VND231 trillion ($9.03 billion).
Industries - Fri, March 28, 2025 | 4:05 pm GMT+7
- Consulting
-
Rethinking resilience: How typhoon Yagi redefines supply chain strategies in northern Vietnam
-
Remove roadblocks to lure foreign investment into Vietnam: HSBC exec
-
AI can be a game changer for Vietnam tourism
-
In trade and investment, ASEAN and China are better together
-
Investment opportunities in LNG-to-power projects in Vietnam
-
Pepper prices 2024: will the dream of 'black gold' repeat?