Focus all solutions to stabilize the stock market
The Vietnamese stock market is in a period of being affected by many unfavorable factors from global macroeconomic and stock market factors.
Along with that, much domestic information is also having a big impact on investor psychology; however, the state management agency affirmed that the violations are only isolated cases of some individuals at the enterprise, the stock market is still guaranteed to operate normally and stably.
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In the long term, Vietnam's stock market still has a lot of growth potential. Photo: Illustration |
Deploying synchronous solutions and stably operating the stock market
The Vietnamese stock market fell sharply in September and continued to face correction pressure in the first sessions of October.
Investors are concerned about the less optimistic information about the world macro situation. Typically, the US Federal Reserve (FED) continues to raise interest rates under inflationary pressure, forcing central banks to implement tight monetary policies, making the global economic outlook more gloomy. Along with that, for the domestic situation, the interest rate increase has also directly affected the stock market.
The strong fluctuations in the Vietnamese stock market in recent times mainly stem from investors' cautiousness in the face of global economic and political instability and are in sync with developments in the international stock market.
The increase in interest rates in the world and Vietnam has had a direct impact on the psychology of domestic investors, causing the market to fluctuate in a downward direction in both score and liquidity.
In addition, market observations show that investor sentiment is being affected by some information about incidents related to specific individual and business violations in the market, including information related to violations at "Van Thinh Phat".
Regarding this issue, Deputy Minister of Finance Nguyen Duc Chi said that this case is directly related to a number of individuals at a number of specific businesses in the market and will be handled according to criminal law. Therefore, the level of violations and handling measures will continue to be clarified by relevant authorities in accordance with the correct order, procedures and regulations of the law.
On the part of the state management agency, Deputy Minister Nguyen Duc Chi affirmed that under the direction of the Government and the Ministry of Finance, the State Securities Commission, and relevant agencies have implemented and will implement many synchronous solutions to ensure the stable operation and development of the stock market; at the same time, closely coordinate with competent agencies to best protect the legitimate rights and interests of relevant investors. Therefore, investors need to be calm, specifically analyze risks and potential opportunities in the stock market to make effective investment decisions" - the Deputy Minister emphasized.
There are still difficulties and challenges, but the outlook is still positive.
According to the management agency's assessment, in the last months of 2022, with the possibility that the Federal Reserve and many central banks around the world will continue to tighten monetary policy to bring inflation under control, the Vietnamese economy in general and the stock market in particular may face a number of challenges, typically: Wave of interest rate increases, inflationary pressure, increased business costs, geopolitical tensions still persist, etc. All of the above factors are likely to affect cash flow and liquidity in the Vietnamese stock market.
However, in the medium and long term, the Vietnamese stock market still has growth potential when some positive factors continue to be maintained. Along with the positive growth of the macro economy, the production and business activities of enterprises continue to flourish.
Statistics show that, among the enterprises that have published their semi-annual financial reports (reviewed) for 2022, 864/994 companies reported profits, accounting for 87%, equal to the same period in 2021. If only listing companies are counted, 582/647 companies reported profits, accounting for 90% of the companies that have made reports. Total net revenue of the group of companies in the first 6 months of 2022 increased by 19.5% over the same period, exceeding the growth rate of the first 6 months of 2021 by 17.6%. Total profit after tax in the first 6 months of 2022 increased by 29% over the same period, lower than the growth rate of the first 6 months of 2021 by 77.5%.
In addition, comparing the correlation of some markets in the world and the region, currently, the valuation level of the Vietnamese stock market is still considered reasonable and is forecasted to contribute to attracting cash flow when short-term risks ease.
Regarding solutions from the management agency, the State Securities Commission is currently reviewing all regulations in the Securities Law and guiding documents to promptly overcome shortcomings and difficulties. Continue to complete the Stock Market Development Strategy until 2030 for submission to the Government for approval, with the main goal of developing the market in a sustainable manner.
In addition, the State Securities Commission is closely coordinating with international organizations to implement solutions towards the goal of upgrading the Vietnamese stock market according to the set roadmap; at the same time, promoting market restructuring, improving the competitiveness and quality of intermediary institutions in the stock market through continuing to restructure securities companies and fund management companies according to the project approved by the Prime Minister./.
