![]() It proved to be among the top five global gainers in 2020. For them, the returns have been good, with the VN-Index rising almost 100 per cent from a 4-year low in March last year to an all-time high in early May this year. The fundamentals behind that growth have been positive too, with low interest rates incentivising investors. It means that investments by local asset managers and private investors go into the local market for which the VN-Index is the main measure of stock market performance, which has seen solid growth. The Vietnamese stock market is important because people here are unable to invest outside the country due to foreign exchange controls. It rose further in 2020 on the back of gains in the local stock market. In 2019, the asset and wealth management sector in Vietnam recorded strong 20-per-cent on-year growth to reach $13.4 billion – a tiny percentage of the $110 trillion global market, but it is a fast-growing one. In Vietnam, where the asset management industry is relatively young compared to elsewhere in Asia, investor interest in mutual funds has grown significantly in recent years, buoyed by demand from a rapidly growing middle class looking for better investment returns. More than ever, when markets are turbulent or the interest rate cycle is set to turn upwards amid inflationary pressure – as is the case now – it is important to have a long-term investment strategy to ride over the market turbulence and effectively manage risk. Tran Thi Kim Cuong - CEO Manulife Investment Management Vietnamīut there is a caveat.
0 Comments
Leave a Reply. |