The falling trading value and volume have proved that foreign investors have been reportedly cut down their investments in Vietnamese shares, the Lao Dong newspaper reported.
In the past four sessions from June 2 to June 5, foreign investors accounted for only 28.1 per cent of total matching orders and 25.7 per cent of total demand on Ho Chi Minh Stock Exchange, marking a sharp fall against 40 per cent in April and 35 per cent in May, the statistics from HOSE said.
The decrease in trading value of foreign investors led to the weaker purchasing power of the whole market.
Foreigners may have been discouraged by the foreign analyses which referred to a possible financial crisis in Vietnam, the newspaper said. However, economists said a crisis is hard to happen although the country is now facing many difficulties.
Martin Rama, World Bank's Chief Economist in Vietnam, insisted that the country has no signal of a monetary crisis that happened in Thailand in 1997.
Hisatsugu Furukawa, the Finance Policy Consultant to the Japan International Cooperation Agency (JICA) also said in the medium and long term Vietnam's payment balance is supported by the capital inflows of FDI, ODA and overseas remittance, and its budget deficit is still under control.
The fund manager VinaCapital, which sent a letter to investors, said “Over the past weeks, international media has posted unfair information on Vietnam's challenges. Their assessments have exaggerated difficulties the country now meets.”
Vietnam is encountering alarming challenges which are consequences of domestic monetary policies, not from external impacts. It has troubles with extraordinary inflation and the devaluation of dong, and the government's tightened monetary policies must need time to take effects, the fund said.
Other international organizations, such as Eurocham and Prudential Plc, are also expressing their optimism about the economy of Vietnam and believing in the soon recovery of the stock market. (Labor)
Vietnamese
