Stocks, gold, real estate: What will Vietnamese people choose?

Many experts predicted that the macroeconomic situation in 2017 would see positive changes, stability, and growth. So, if we have money next year, where should we invest for the best return?

Illustrative image. Source: Internet

According to the 2016 report on investment asset selection trends by Techcombank Securities (TCBS), rental properties and purchased properties were the most attractive investment channels in the eyes of those surveyed. Stock investments ranked only third, and savings deposits dropped to fourth place.

In 2017, according to experts, real estate remained one of the most promising investment channels. At the recent online discussion "Vietnam Real Estate Market 2017: Trends and Forecasts" organized by Vietnam Real Estate Magazine in Hanoi, Associate Professor Dr. Tran Kim Chung, Deputy Director of the Central Institute for Economic Management Research, also stated: "Choosing to invest in gold, deposit money in a bank, or invest in real estate in 2017 is a question many people are asking."

"Generally speaking, gold is falling in price, and banks are lowering interest rates on deposits. Meanwhile, real estate is experiencing stable growth. Considering the costs and benefits, investors should make their own decision. I can't specifically advise whether or not to invest in real estate, but in the context of the two aforementioned factors declining, real estate is rising. However, investors must also understand that real estate investment is a long-term investment," Mr. Chung explained.

Mr. Chung also noted that the Vietnamese real estate market is currently showing many positive developments, with money still flowing in. For example, industrial parks are still expanding, resort projects are starting construction, and apartment projects in major cities continue to revive.

"It is also possible that in the near future, due to the impact of global capital flows, the Vietnamese real estate market may be affected. However, money is still flowing into real estate, but not increasing compared to 2016."

"But if capital decreases, large-scale or ultra-luxury projects with high value are likely to be directly affected. As for medium-sized and lower-medium-sized projects, even if capital changes, they will not be significantly affected in 2017," Mr. Chung said.

According to Mr. Chung, three factors will drive the real estate market in 2017. Firstly, stable economic development; 2017 is projected to be more economically developed than 2015 and 2016; growth, inflation, exports and imports, and budget deficit.

Secondly, all stakeholders in the real estate market are experiencing very positive prospects. Non-performing loans continue to be rigorously addressed, credit for real estate is allowed to increase again, and people are beginning to want to invest their capital in the real estate market.

Thirdly, there are policies and issues related to state management, market orientation, and support. For example, thoroughly addressing bad debts and allowing businesses at risk of bankruptcy to go bankrupt, in a way that promotes market transparency.

"The global situation and trends are not experiencing sudden changes or explosions, but rather adjustments to guide policy, without any unforeseen problems. Furthermore, Vietnam remains in a stable development region, without potential conflicts. Meanwhile, state management is geared towards transparency, stability, and forecasting, helping businesses and potential investors feel secure in investing in the real estate market," Mr. Chung emphasized.

According to Young Intellectuals