The capital market still has plenty of room for growth.

(Baonghean Newspaper) - As reported by Baonghean Newspaper, from July 1st to 6th, the Vietnam-US Investment Promotion Conference took place in the world's largest financial center - New York City (USA). The presence of over 160 international investors at the Investment Promotion Conference "My Vietnam - Your Investment Destination" demonstrates the special interest of international investors in Vietnam - a friendly and promising market. At the same time, it also opens a new phase in promoting socio-economic development in Vietnam.

Twenty years ago today, Vietnam and the United States announced the normalization of diplomatic relations, opening a new phase of cooperation and development between the two countries. Since then, bilateral foreign exchanges in various fields, especially in the financial sector, have developed strongly and continuously in recent years. In 2013, during the state visit of President Truong Tan Sang to the United States, leaders from both sides agreed to upgrade bilateral relations to a comprehensive partnership. This is an important beginning, further deepening and expanding relations based on the existing cooperation between the two countries.

In the capital market, many large US financial corporations have a presence in Vietnam. The total number of US investors recorded to date is 995 (including 565 institutional investors and 430 individual investors), representing a relatively large proportion of the total number of foreign investors granted trading codes. In terms of volume, US investors currently hold over 5 million bonds, over 8,500 fund certificates, and over 1 billion shares with a total value exceeding 12 trillion VND in the Vietnamese stock market.

Hoang Quan Real Estate Company (Ho Chi Minh City) signed an economic contract worth 20 million US dollars right at the Vietnam-US Investment Promotion Conference.

The aforementioned events and figures demonstrate that US investors have shown great interest, contributed significantly, and played a crucial role in Vietnam's economy and finance. The Vietnamese government also acknowledges and highly appreciates the role and presence of US financial corporations and investors in Vietnam. However, indirect US investment in Vietnam is currently quite modest compared to the potential of US investors and the Vietnamese market's capacity to absorb investment capital. Thus, the capital market still has much room for new cooperation between the two countries and significant potential for US investors.

With only 729 investment projects in Vietnam, totaling approximately US$11 billion, these figures represent an impressive reality of foreign investment in Vietnam. However, compared to the inherent potential, these numbers do not fully reflect the potential for cooperation and trade between the two countries, which are increasingly strengthening comprehensive cooperation in accordance with the directives of the high-level leaders of both nations. In particular, indirect investment capital remains very limited and needs to be unlocked at the government level.

According to Finance Minister Dinh Tien Dung, indirect investment from the United States in Vietnam is currently quite modest compared to the potential of US investors and the capacity of the Vietnamese market to absorb investment capital. This shows that the capital market still has much room for new cooperation between the two countries and much potential for US investors. With a growth rate among the top 3 countries in Asia over the past 10 years (6.4%/year), the steadfast commitment to developing a market-based economy, and the pursuit of a modern government through strong reforms in administrative procedures, the application of information technology in management and operation, and the commitment to promoting international integration, Vietnam has signed many free trade agreements (FTAs) with major countries and regions such as the United States, the EU, Japan, South Korea, and soon the Trans-Pacific Partnership (TPP)... opening up huge opportunities for the Vietnamese economy and investors interested in Vietnam.

Speaking before more than 160 US investors, US billionaire Wilbur L. Ross, with a net worth exceeding $3 billion, ranked 200th in the US and 600th globally, stated that, in his view, Vietnam is the safest country in the world, has experienced and will continue to experience high growth, and is a promising destination for US investment. Vietnam is undergoing a significant transformation in the ownership of state-owned enterprises between the government and private investors. This presents a rare and exciting opportunity for those who know how to seize it,” said billionaire Wilbur.

Welcoming investment capital from the United States.

The conference, titled “My Vietnam – Your Investment Destination,” held in New York, conveyed a message about a dynamic and innovative economy, eager and ready to welcome foreign investment, especially from the United States. In particular, a significant “gift” from the Vietnamese Ministry of Finance at this conference was the government's decision to relax the “room” for financial investment in the stock market and to participate more deeply in the privatization process of state-owned enterprises. These were also the two specific issues that attracted the most attention from American investors at the conference. Just three days before the Investment Promotion Conference in the US, the government issued Decree No. 60/2015/ND-CP, which includes increasing the foreign ownership limit in public companies, except for restricted and conditional business sectors where foreign investors are allowed unlimited ownership according to WTO commitments.

According to the Chairman of the State Securities Commission, Vu Bang, this development shows, on the one hand, that the Vietnamese Government highly values ​​US investors, and on the other hand, demonstrates Vietnam's strong determination to innovate and integrate internationally, including strongly welcoming foreign investment into Vietnam through this policy. Besides increasing the foreign ownership limit, one of the requirements for a "nascent" market like Vietnam to be upgraded to an emerging market is the convenience of market access for foreign investors. To help investors access the market more easily, such as streamlining procedures for opening trading accounts and establishing derivative instruments, the State Securities Commission has also introduced other solutions such as issuing a circular amending Circular 213/2012/TT-BTC guiding the activities of foreign investors on the stock market. Accordingly, administrative procedures will be streamlined, and Circular 74/2012/TT-BTC, which guides the removal of some obstacles for foreign investors participating in the stock market, will be revised to allow foreign investors to buy and sell the same type of security on the same trading day.

In addition, the Ministry of Finance and the State Securities Commission have reviewed tax, fee, and levy policies to encourage and attract domestic and foreign investors, such as pension fund products; reorganized markets (market for trading shares of large companies; market for trading shares of small and medium-sized companies; upgrading the Upcom market for unlisted public companies) - Chairman Vu Bang said.

Speed ​​up the process.CPH welcomes investment capital.

Regarding specific opportunities arising from the equitization, divestment, and restructuring of enterprises in Vietnam, SCIC General Director Lai Van Dao shared with American investors that SCIC currently has nearly 300 enterprises requiring divestment of state capital. In addition, the Prime Minister has just handed over 20 corporations and general companies to SCIC for management of state capital, including large corporations such as Vinatex, which will also undergo significant restructuring and divestment by SCIC. “With the government's decision to open up the foreign ownership limit to 100% in Decree 60, I hope that American investors will be interested in acquiring the state capital in the enterprises that SCIC is currently managing. Furthermore, American investors can participate with SCIC in other investment projects in Vietnam,” said General Director Lai Van Dao.

For American investors, there are currently several opportunities worth considering, such as SCIC's intention to divest its stake in Vietnam Construction Corporation (Vinaconex). This is one of the largest construction corporations in Vietnam, with an expected sale value of over 3 trillion VND. Along with the policy of increasing foreign ownership limits, SCIC will report to the Prime Minister on the sale of a large portion of state capital in several large corporations and companies. Once the Prime Minister approves, we will provide further information to American investors to attract investment – ​​General Director Lai Van Dao affirmed.

Sharing his views with American investors, the General Director of Vietnam Coal and Mineral Corporation (Vinacomin), Dang Thanh Hai, stated that Vinacomin is quite large in scale, second only to the Vietnam Oil and Gas Group and the Vietnam Electricity Group. Vinacomin's equity capital is approximately 2 billion USD, making it a worthy and attractive investment location – General Director Dang Thanh Hai stated.

Openness, sincerity, determination, and a willingness to learn were key messages the Vietnamese government conveyed to American investors at the conference. It is known that during the investment promotion activities at the conference, many contracts were signed and numerous memoranda of understanding were established between Vietnamese businesses and US investors.

Red River