Analysts all have optimistic forecasts for cash flow to Vietnam in 2022 and the years ahead after a year of net withdrawals.
The first offers of 2022
Arisaig Asia Fund Ltd announced the purchase of 1.3 million MWG shares of The Gioi Di Dong (Mobile World) on January 10. Thus, the foreign fund spent 180 billion VND to collect more Vietnamese stocks.
After the transactions, his ownership ratio in MWG fell from 6.99% (48.8 million shares) to 7.18 million (51.2 million shares).
Arisaig Asia, owned by Singapore-based Arisaig Partners, invests primarily in FMCGs (fast moving consumer goods), consumer services and retail, and now holds VND6.9 trillion worth of MWG shares.
Also at the beginning of the new year, VPBank sought the opinion of shareholders on the plan to increase the rate of foreign participation in the bank to 17.5% instead of 15% initially planned, in order to make a private offer to new foreign strategic investors. and create more favorable conditions for existing foreign shareholders in the stock market.
The plan was brought up for discussion at the 2021 general meeting. Opinions in informed circles say the foreign investor is SMBC of Japan. It was the partner that acquired 49% of the shares of FE Credit for a record price of $1.4 billion.
Vietnam has also seen positive signs in attracting FDI. Goertek Group received an investment registration certificate for its additional investment of $400 million. Do Quang Hien’s T&T Group and three South Korean partners (Hanwah, Kosspo and Kogas) launched the $2.3 billion gas-fired power project in QuangTri on January 15. The plant, with a capacity of 1,500 MW in the first phase, would be put into commercial service in 2026-2027.
Bac Giang Province has also granted investment registration certificates to some foreign-funded projects, including FUSHINI Vietnam, Zhengzhou Boruikate Tools and Capella Land.
At a ceremony for receiving the investment approval decision in 200 hectares of industrial land in Hung Yen, Kinh Bac City Development Holding Corporation (KBC) signed a memorandum of understanding on cooperation and investment of worth $1 billion with the first potential client – ACI Capital.
Economists predict Vietnam could attract $40 billion in FDI in 2022 after attracting $31.15 billion in 2021.
Nguyen Mai, chairman of the Vietnam Association of Foreign-Invested Enterprises (VAFIE), believes in bright prospects for the new year 2022 with the country’s next-generation FTAs (free trade agreements) and a strong recovery in the economy. economy. Once international air routes reopen, it will be easier to attract foreign investors.
Vu Tien Loc, chairman of VIAC (Vietnam International Arbitration Center), believes that foreign investment in Vietnam will improve significantly in the last months of 2022, when the pandemic is contained and policies are implemented to help companies recover. to sort out.
In recent years, Thai investors have invested a lot of money in Vietnam, buying breweries, plastics and cement factories. ThaiCham said Thai investors will inject several billion more dollars into Vietnam in the coming time, targeting the production, retail and energy sectors.
Regarding foreign portfolio investment, Saigon Securities Incorporated (SSI) may see positive factors in cash flow in December. He predicted that investment fund capital, especially ETFs (exchange-traded funds), would return (in 2021, the net sale by foreign investors was $2.3 billion).
Other factors supporting the market include upgrades in technology used by stock exchanges, the possibility of the Vietnamese stock market moving from frontier to emerging, and more room for foreign investors.
Management authorities have recently imposed heavy penalties for violations to increase transparency and the quality of goods in the stock market. In the long run, these are factors that will help the market modernize and attract foreign capital flows on a much larger scale.
The strong growth of large Vietnamese companies such as T&T, Hoa Phat, Masan and Vingroup which all want to cooperate with foreign groups is also helping to attract foreign capital.
Regarding business models, Loc said Vietnam will accelerate institutional reform and legal framework to create a safer and better investment environment.
Despite the Covid-19, Vietnam still attracted a high volume of FDI in 2021, while the forecast for 2022 is optimistic.
In general, foreign institutions still believe that Vietnam has long-term attractiveness. SIIA said Vietnam is an attractive destination for international investors. The World Bank also said that foreign investors have confidence in Vietnam.
The World Bank, in its latest report released in January 2022, predicted that Vietnam’s economy will prosper in 2022 with a GDP growth rate of 5.5%, while the economy will return to the growth path of before Covid by 2023 when domestic demand would fully recover. and there is no new shock.
According to economist Dorsatin Madani, unlike many other countries, Vietnam has considerable fiscal space. A broader fiscal policy could be implemented and will not have a significant impact on fiscal balances.
In general, Vietnam’s economy is expected to remain stable from 2023.
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