Founded in July 2000, Vietnam is dominated by three exchanges: HOSE, HNX and UPCOM, of which HOSE is the largest exchange in Vietnam, accounting for more than 70% of the total market value of Vietnam. As of the beginning of 2021, the number of HOSE listed companies was 338 with a market capitalization of about VND 3,630 trillion. Vietnam** has undergone many fluctuations and adjustments, and is currently in a period of rapid development.
Headquartered in Hanoi, the Vietnam ** Exchange will serve as the parent company of the Hanoi Stock Exchange and the Ho Chi Minh City Stock Exchange, with a registered capital of 3 trillion VND (about 1.).US$300 million), wholly state-owned*** by the Ministry of Finance on behalf of the state to exercise capital ownership. The Hanoi Stock Exchange and the Ho Chi Minh City Stock Exchange, as their subsidiaries, have the status of independent legal persons and operate independently.
The Vietnam** Exchange was set up in two phases to ensure the smooth functioning of the market. From 2019 to 2020, operations at the Hanoi and Ho Chi Minh trading centers will continue as usual, along with the establishment of the Vietnam** Exchange. From 2020 to 2023, the market information system will be launched in the above two sub-trading centers, and the privatization of the ** Vietnam Exchange will be completed after 2023.
On December 11, 2021, on the basis of the merger of the Hanoi ** Exchange and the Ho Chi Minh City ** Exchange, the Vietnam ** Exchange was officially inaugurated in Hanoi today. At the unveiling ceremony, the Vietnam ** Exchange officially released the brand identity system and **.
In recent years, Vietnam** has actively promoted the reform of state-owned enterprises and the opening up of the economy, and has continuously attracted foreign capital inflows. Among them, manufacturing, real estate and financial services are important areas of Vietnam's economic growth. Listed companies in these fields are expected to benefit from the improvement of national policies and market demand, and become the hotspot of investment. In addition, Vietnam's younger population, consumption upgrading and urbanization continue to advance, which also provides opportunities for retail, healthcare, education and other industries.
Why did Vietnam emerge from a long-term bull market?
In recent years, with the rapid economic growth of East Asia, Vietnam is becoming another "miracle" after the "Four Little Tigers" and "Four Little Tigers" in Asia.
Vietnam's economic boom began with the reform and opening up in 1990, and during the 30-year period from 19990 to 2020, the GDP maintained an average annual GDP of 67% growth. Because Vietnam has a political system similar to China's, it has adopted the same development model as China and has experienced a development process that is basically similar.
Vietnam is a country with import and export as the core, due to its superior geographical location and low labor costs (less than half of China's), coupled with an open economic policy, Vietnam has the potential to develop into a world foundry.
Benefiting from the transfer of China's industrial chain, more and more foreign investment has entered Vietnam, Vietnam has become an important area to undertake the transfer of China's production capacity, from labor-intensive textile and other light manufacturing, to more electronics, communications and other technology-intensive advanced manufacturing, is being transferred to Vietnam, such as Samsung, Apple and other upstream and downstream industrial chain supporting enterprises have also begun to build factories in Vietnam.
The rapid growth of Vietnam's economy has laid a solid foundation for the development of the country and provided it with a steady stream of power.
Features of Vietnam**
1. The proportion of foreign ownership exceeds 20%, which is much higher than China's 44%, *Mainly individual investors, small and medium-sized investors account for more than 90%.
Following China's example, Vietnam has actively promoted domestic economic reform, adopted the reform and opening up strategy of "crossing the river by feeling the stones", and boldly introduced foreign investment. By lowering the investment threshold and simplifying the registration process to attract foreign investment, the continuous influx of foreign resources has injected vitality and vitality into Vietnam, promoted the continuous development of the country, and walked out of a bull market that has lasted for several years.
At present, foreign capital accounts for more than 20% of Vietnam**, which is five times that of A-shares. Therefore, the strong performance of the US dollar has also become more and more obvious in Vietnam**.
Second, the stable social environment and loose policies provide a good investment environment for the stable operation of the country
Vietnam attaches great importance to development and has introduced a series of policies and measures to support development. It not only strengthens the supervision of the market, but also improves the transparency of the market and maintains the fairness and impartiality of market transactions. At the same time, Vietnam** also actively promotes innovation in the capital market and encourages more enterprises to go public and raise funds.
The introduction of these reform policies has provided investors with more opportunities to choose, thus further stimulating the vitality of the market.
Third, the reform of state-owned enterprises has achieved remarkable results and the rapid economic growth has provided a leading driving force
In recent years, Vietnam has accelerated the reform process of state-owned enterprises and enhanced their competitiveness through mixed ownership and the introduction of market mechanisms. The reform of state-owned enterprises has created a good investment environment for the development of enterprises, thus obtaining more overseas investment, and on this basis, greatly improving the labor productivity of enterprises, obtaining better economic benefits, and promoting the rapid growth of Vietnam's economy, thus further promoting the development of the enterprise
In 2021, Vietnam's per capita GDP was US$3,680, and in 2022, Vietnam's per capita GDP reached US$4,110, a year-on-year increase of 117%, showing the great potential for Vietnam's economic growth.
Fourth, Vietnam** has high growth potential and low valuation level
As an emerging country** market, Vietnam** has high growth potential and low valuation levels compared to mature capital markets. Although Vietnam's development time is relatively short, its economic growth potential and investment value have been widely recognized by the market, and it has become a value "depression" for global capital investment, which is also the reason why foreign investment has been pouring into Vietnam in recent years.
As Vietnam is still in the early stage of development, the valuation level is low, the market volatility is large, but the investment risk is low, which provides investors with greater investment growth space and security. For example, Tianhong Vietnam Market** (008763) has a maximum drawdown of only -14 since its inception95%, while its yield is as high as 2524%, thus reflecting the relatively low return on investment and risk of Vietnam**.
Tianhong Vietnam Market is an actively managed QDII, which refers to the establishment of domestic investment in overseas markets. From the perspective of growth and performance, the yield of Tianhong Vietnam Market** since its establishment is 48%, slightly outperforming the Vietnam VN30 Index.
From the perspective of growth, Tianhong Vietnam's market** has grown from less than 200 million yuan at the time of its establishment to 48 million yuan by June 20239.9 billion yuan, a record high. According to the 2023 interim report, the number of households held by Tianhong in the Vietnam market is 1360,000, with individual investors accounting for 975%。
Conclusion
The principle of "** is the barometer of national economic development", although it has completely failed in the a** field, cannot be reflected at all. However, in Vietnam**, it is well documented. Facts have proved that no matter how good the background of national economic development is, if there is no standardized and effective market, it is difficult to show its due investment value, and it can only fall into a long-term muddy and sluggish bear market.