Vietnam’s stocks have great potential for foreign investors

VietNamNet Bridge - KustoCem, an investment institution from Singapore, saw profits of VND900 billion thanks to investment in CTD shares of CotecCons.


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Vietnam’s VN-Index has increased sharply in the last six months, now ranked second on the list of world markets in the first six months of the year, according to World Market Indices, with a growth rate of 4.57 percent.

Meanwhile, Bloomberg has predicted the VN Index may climb to 622 points by the end of the year. It noted that while the other regional countries now witness a foreign capital withdrawal trend, Vietnam is one of the four countries where foreign investors still buy more than sell.

Vietnam is still attractive to foreign investors, according to Reuters, because Vietnam’s stocks are the most profitable channel in Asia. The VN Index has increased by 13 percent in value in the last year, while a lot of shares have soared in prices, which has brought attractive profits to investors.

KustoCem, for example, which injected money into CTD shares three years ago, has made a profit of VND900 billion. At that time, the institution accepted to buy CTD shares at the price which was 25 percent higher than the market price. However, this was still a good deal.

KustoCem belongs to Kusto Group which operates in many different fields and has been present in many countries, including China, India, Russia, Kazakhstan, Turkey and Canada.

Kusto Group came to Vietnam in 2005 when it poured capital into Binh Thien An. Later, it conducted a series of merger and acquisition deals, including the purchase of a 12 percent stake in Gemadept, a freight forwarding firm, in 2014.

Meanwhile, Nawaplastic Industries (Saraburi) shows its consistent strategy on eyeing Vietnam’s plastics industry. In late 2012, Nawaplastic collected Tien Phong and Binh Minh Plastics’ shares in large quantities. 

Analysts noted that if Nawaplastic sells Binh Minh stakes now, it would get value four times higher than the initial investment capital, while the investment in Tien Phong would bring double the profit.

Top Poh Thailand Fund, also from Thailand, only began investing in Vietnam in 2015, but it still made profit just after a short time. It earned VND154 billion just after seven months of investing in CTD shares.

The fund has also poured capital into Hoang Huy’s HHS shares and Superdong’s SKG shares.

At the annual shareholders’ meeting held in October, VinaCapital said that its investment in Vietnam Opportunity Fund Limited’s (VOF) listed shares three years ago had brought an annual profit of 15.3 percent. However, the profit was still lower than the profit it made from investments in private equities.

NCDT

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