Foreign Investors Flock to VinaCapital Meeting in HCMCity

More than 100 world leading investors and economists gathered in the Investors Conference held by VinaCapital in HCM City November 10-11, discussing the situation of the macro-economy, challenges and opportunities in various sectors as capital market, the private economic sector, property, technology and infrastructure.

 

Almost participants agreed that despite the current difficulties, Vietnam is still embracing great opportunities for foreign investors in the long term. With the loosened monetary policy applied by the government of Vietnam currently, the inflation is expected to be pulled down in 2009, while enterprises will have easier access to bank loans to feed their production and business.

 

Pham Do Chi, chief economist and head of market risk management for the VinaCapital Group, said the impacts of the deepening global financial crisis on Vietnam will be more indirect than direct because of the banking sector’s limited exposure to international financial markets and capital flows.

 

Chi told participants at the conference that the country’s GDP growth might slow to 5 per cent-5.5 per cent next year compared to the official target of 6.5 per cent, but the figure is still better than other countries.

 

“If the world recession worsens, authorities need to continue their flexible monetary policy to stimulate the domestic demand,” he said.

 

Andy Ho, executive director of VinaCapital’s VOF Fund, said with Vietnam’s loosened monetary policy, investors will turn back to invest in the country next year.

 

Speaking of the withdrawal of some investors in finance and banking sector recently, HR Director of ANZ Bank Philip Crouch said foreign investors should not withdraw their capital out of the country at this time, but to wait for opportunities in the coming time.

 

The VinaCapital Group’s General Director Don Lam also agreed by giving that in a recent conference in Singapore, up to 30 per cent of Chinese investors wanted to shift their investment to Vietnam.

 

The group also officially announced its plan to launch another real estate fund with limited members early next year. VinaCapital is operating four funds with a total value of more than US$1.9 billion, including Vietnam Opportunity Fund, VinaLand, Vietnam Infrastructure Limited and DFJ VinaCapital. (Young People, Labor, VNA)