Recently, the territory's first dedicated investment in the Vietnamese market, the theme fund - the stock-based launch of the stock-based investment funds officially released. According to the prospectus, the fund's equity assets account for no less than 80 per cent of the fund's assets, and its investments in Vietnamese-themed companies are no less than 80 per cent of non-cash fund assets.
Indeed, it is not just the tianhong fund that is looking to vietnam, an emerging market. Since 2011, more and more fund managers have started to invest in vietnam, which accounts for an increasing percentage of emerging market funds worldwide on average and now stands at%, according to the copley fund. Brokers and state-owned banks are also beginning to lay out in Vietnam. Moreover, in the first 11 months of 2019, Vietnam's FDI (international direct investment) agreements from mainland China amounted to $100 million, a sharp increase of% year-on-year, while the number of investment projects jumped to 615, an increase of% year-on-year, according to the CICS research group.
In addition to brokers and public funds, the state-owned five banks have quietly completed the layout in Vietnam. By the end of June 2018, China's top five state-owned banks, the establishment of Sino-industrial relations, had all set up branches in Vietnam, increasing to seven local branches. Among them, the branches of Bank of China, Bank of China and Bank of Communications are located in Ho Chi Minh City, and the branches of ICBC and Agricultural Bank are located in Hanoi City. In addition, ICBC and AgBank each have an office.
The “is open and welcoming to the acquisition of local securities firms, and the procedures will not be complicated." Tsai min-yu, president of finance and economics at zhixin, who went to vietnam's hanoi exchange for research in 2019, told the securities times that vietnam's openness to foreign investors was one of the reasons for attracting chinese financial institutions.
For many researchers, vietnam has a similar path to that of china. The 2019 survey of Vietnam by the CICC outposts also confirmed the popular impression of Vietnam. In terms of GDP per capita, Vietnam now equals China's 2006-2007 figure of less than $3,000, according to the research group.
Vietnam's real GDP grew by% in 2018, above China's growth rate of%. According to Vietnam's official information, in the first three quarters of 2019, Vietnam's GDP grew by% year-on-year.
Compared with China, the contribution of Vietnamese consumption to GDP growth is significantly higher than that of investment, while the contribution of net exports is volatile. During the research, the research group also learned that the Vietnamese government attaches great importance to learning from the experience of reform and opening up in Guangdong Province, the only province in Vietnam to sign a cooperation agreement with the local government in the name of the country. All of the companies surveyed believe that insisting on opening up to the outside world and absorbing foreign investment will still be an important step for the Vietnamese government to actively integrate into the world in the future.
From the stock market, with the rapid development of the economy, Vietnam's stock market performance is also strong. The Ho Chi Minh Index (VN), one of the most mainstream measures of Vietnam's market, led the global market in 2017 with a% gain; it rose by% in 2019. The VN30 index rose cumulatively by% from 2015 to 2019, with an annualized yield of%. Currently,% of emerging market equity funds hold three times as many Vietnamese stocks as in early 2014, according to data from the Copley Foundation.
In recent years, the influx of foreign companies into the Vietnam market has made Vietnam regarded as the next “world factory ”. The China-Korea outpost research group found that Japan and South Korea have been the main sources of FDI absorption in Vietnam. Over the years, investments from japan and south korea combined accounted for about 40% of vietnam's FDI, reaching high levels of 48% in 2017 and 45% in 2018. In contrast, China's entry into Vietnam's investment layout is relatively lagging.
Since 2006, chinese companies have begun to invest heavily in vietnam. From the textile industry, mechanical and electrical equipment to electronic equipment, from the transfer of a single enterprise to the transfer of the whole industry, the direction of the Chinese enterprises to Vietnam is more clear and the execution is stronger. In the first 11 months of 2019, Vietnam's FDI agreements from mainland China amounted to $100 million, a year-on-year increase of% at a low base, further increasing to%.
The CICC outpost research group learned from a Sino-foreign economic and trade cooperation zone in Vietnam's coastal defense that the park has been more densely visited and more well-known than a year ago in the first half of 2019. Among them, the most hot electronic equipment industry, furniture, mechanical and electrical equipment, computers and other enterprises are also more.
“What Vietnam has given me in recent years is that it does have advantages, including low human costs and high quality of workers. For example, the photovoltaic industry and feed industry have attracted a lot of domestic enterprises in the past, and the operation is good. Chen cheng, managing director of guangxi liuzhou's easy-to-investing private equity fund, has also taken an interest in vietnam after seeing a number of major international institutions start opening branches in vietnam. In the past three years, chen has been studying vietnam every year. "If the time when Chinese companies entered Vietnam was a state-led investment in infrastructure, it is becoming more and more predominantly private." After examining vietnam's aquatic products, tourism and real estate, mr chen said the country's aquatic products and tourism and other consumer industries have huge potential," we are also about to issue funds to invest in vietnam stock market."
“Chinese companies are very influential in Vietnam, because some Chinese companies are hiring more Vietnamese workers than their own companies, and many Vietnamese are willing to work for Chinese companies, so the popularity of Chinese is now high in Vietnam. Cai Minyu told reporters.
Several leading companies visited by the CICC outposts also made it clear that they have clearly sensed a shift in orders from mainland China, and that they expect orders and revenues from Vietnamese factories to rise sharply over time. All these Chinese companies have made it clear that they will further expand the capacity of Vietnam in the future, enrich the variety of products, improve the product line, form a more comprehensive processing and supporting capacity, promote the coordination and cooperation between Vietnamese factories and factories in mainland China, and better realize the overall balanced development of the company.
Vietnam's stock market is understood to have listed only two stocks in the late 1990s. But as of October 15,2019, Vietnam's total stock market value had reached $100 million. According to the Global Industry Classification System (GICS), finance and real estate are the two largest sectors of the Vietnamese stock market, accounting for 27 per cent and 26 per cent of the market value.
In terms of offshore capital holdings, the Vietnamese exchange's foreign-owned shares have increased from no more than 20 per cent in the first place to 49 per cent in the second. In addition to holding 30 per cent of foreign ownership in other important sectors such as banks, many sectors, including brokerages, have been liberalized to 100 per cent.
At present, Vietnam's stock market has attracted a large number of domestic and foreign investors to enter the market, with the number of securities accounts increasing from 3,000 in 2000 to 1.9 million in 2017, of which about 10,000 are foreign investors, according to Guotai Junan International Research data. Net purchases by overseas investors jumped in 2018 from 26 trillion dong in 2017 to 43 trillion dong, mainly from Japan, South Korea, Singapore and the United States.
Guotai junan international research report, vietnam's development path and china's high coincidence, is a copy of china's reform and opening up, the current vietnamese market experienced the process of privatization of state-owned enterprises, similar to the 2005 chinese stock reform. Reviewing China's stock reform in 2005, China's A-share unlisted companies were at an inflection point in their performance, and the A-share performance in 2006-2007 witnessed a major explosion, with the ROE of the listed companies rising from% in 2005 to% in 2007 and the net profit growth rate of up to 72% in 2007, driving the Shanghai index up 130% and 97% in 2006 and 2007 respectively. Therefore, it is expected that the privatization of state-owned enterprises in Vietnam will also bring significant opportunities and huge arbitrage space for Vietnamese stock market.
“I'm cautiously optimistic about the Vietnamese stock market." The reason for optimism, mr. chen says, is that there is now more than 95 million people in vietnam, about 3% of shareholders and an average margin of about $10,000 for stock market accounts, both of which have a lot of room for improvement. However, Vietnam's stock market has become a bit like Hong Kong's, with big blue-chip stocks favored, with an average price-to-earnings ratio of 30, not low, and restrictions on foreign holdings, while the financial problems of small and medium-sized enterprises are less reassuring; and the "share-sharing" problem in the early days of the Chinese stock market is also in the Vietnamese stock market. "In addition, Ho Chi Minh is a very international city, and I have access to many investment institutions whose employees are native to Europe and the United States. Chinese investors may not be as easy as they think if they want to take a dimension reduction hit. Chen Cheng said.