Vietnam stocks expected to rise 10% by year-end

Reading Time: 2 minutes

stock exchange VNVietnam’s stock index VN Index is poised to rally about 10 per cent by year-end as inflation slows and exports grow, according to the nation’s biggest brokerage, Ho Chi Minh City Securities Corp.

The index will probably climb to 550 by December 2013, from around 500 at the end of October, said Fiachra MacCana, a managing director and research head at Ho Chi Minh City Securities Corp according to a Bloomberg report. The index has already risen 21 per cent this year.

Vietnam’s inflation rate fell to the slowest pace in 14 months in October, below the median economist estimate in a Bloomberg survey, data from the General Statistics Office showed yesterday. Exports climbed 16 per cent in the first nine months of 2013 from a year earlier on sales of electronics and mobile phones. Overseas demand is helping support an economy that’s been hurt by faltering credit growth, with Fitch Ratings estimating bank bad debt at about 15 per cent of loans.

The State Bank of Vietnam devalued the dong by 1 per cent in June, the first time since December 2011. Policy makers won’t let the currency weaken by more than 3 per cent this year as they seek to prevent the hoarding of dollars, the central bank said October 8.

Exports surging

Vietnam posted an impressive $101.93 billion worth of export turnovers in the year to the middle of October, up 15.7 per cent compared to the same period last year, according to statistics issued by Vietnam Customs.

Exports of mobile phones and spare parts stood at $16.67 billion. The commodity group of computer and electronics products came in second place, with export volumes reaching $8.16 billion. Garment businesses posted a $13.91 billion revenue from exporting textile products, $6.31 billion in the footwear sector and $0.71 billion in the leather sector.

The country’s traditional export staples also posted high revenues. While seafood products surpassed $5 billion and crude oil exports stood at $5.65 billion, wood products reached $4.10 billion.

According to a survey issued by the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA), customers from European countries as well as Japan and the US tend to order products from Vietnam as they are cheaper than those from China.

Dang Quoc Hung, Vice President of HAWA, claimed that this is a great opportunity for Vietnamese enterprises. “However, it is also a challenge as sometimes those companies are unable to meet delivery deadlines, which might affect their reputation,” Hung said.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 2 minutes

Vietnam’s stock index VN Index is poised to rally about 10 per cent by year-end as inflation slows and exports grow, according to the nation’s biggest brokerage, Ho Chi Minh City Securities Corp.

Reading Time: 2 minutes

stock exchange VNVietnam’s stock index VN Index is poised to rally about 10 per cent by year-end as inflation slows and exports grow, according to the nation’s biggest brokerage, Ho Chi Minh City Securities Corp.

The index will probably climb to 550 by December 2013, from around 500 at the end of October, said Fiachra MacCana, a managing director and research head at Ho Chi Minh City Securities Corp according to a Bloomberg report. The index has already risen 21 per cent this year.

Vietnam’s inflation rate fell to the slowest pace in 14 months in October, below the median economist estimate in a Bloomberg survey, data from the General Statistics Office showed yesterday. Exports climbed 16 per cent in the first nine months of 2013 from a year earlier on sales of electronics and mobile phones. Overseas demand is helping support an economy that’s been hurt by faltering credit growth, with Fitch Ratings estimating bank bad debt at about 15 per cent of loans.

The State Bank of Vietnam devalued the dong by 1 per cent in June, the first time since December 2011. Policy makers won’t let the currency weaken by more than 3 per cent this year as they seek to prevent the hoarding of dollars, the central bank said October 8.

Exports surging

Vietnam posted an impressive $101.93 billion worth of export turnovers in the year to the middle of October, up 15.7 per cent compared to the same period last year, according to statistics issued by Vietnam Customs.

Exports of mobile phones and spare parts stood at $16.67 billion. The commodity group of computer and electronics products came in second place, with export volumes reaching $8.16 billion. Garment businesses posted a $13.91 billion revenue from exporting textile products, $6.31 billion in the footwear sector and $0.71 billion in the leather sector.

The country’s traditional export staples also posted high revenues. While seafood products surpassed $5 billion and crude oil exports stood at $5.65 billion, wood products reached $4.10 billion.

According to a survey issued by the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA), customers from European countries as well as Japan and the US tend to order products from Vietnam as they are cheaper than those from China.

Dang Quoc Hung, Vice President of HAWA, claimed that this is a great opportunity for Vietnamese enterprises. “However, it is also a challenge as sometimes those companies are unable to meet delivery deadlines, which might affect their reputation,” Hung said.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid