Such rate is significantly lower than the 11.8% recorded in 2019 or 10.6% in 2020, it added.
The BVSC attributed the outflow of foreign capital to the restructuring of investment portfolios, however, in long-term, “Vietnam continues to be an attractive market thanks to stable economic-political environment, good price to earnings (P/E) ratio, and expectation for soon market upgrade,” stated the securities firm, expecting foreign investors to soon return as net buyer.
In the meantime, as the benchmark Vn-Index is on track to reach the new height of 1,300 points in short-term, the report suggested domestic capital inflows would be the major driving forces, especially as other domestic investment channels continue to stand idle and the low-interest rate environment as a result of the State Bank of Vietnam (SBV)’ polices continues.
On the same view, SSI Securities Corporation (SSI) expected the stock market to keep its upward trend, due to the low risk of inflation, positive performance of the banking sector in the first quarter, and the strong economic recovery.
“The target of 1,350-1,400 is entirely feasible in the coming time,” stated the SSI.