Statistics show that the local economy is in fact entering a new growth cycle supported by macro-economic stability, and low inflation. The country is also heading towards its sustainable development goals and a gross domestic product growth rate of 6.5 - 7.0 per cent between 2016 and 2020. Trade volume is also expected to increase by 12 - 15 per cent per annum, and bolster up to $600 billion by 2020.
From the beginning of the year to 20th September, 2015, FDI attracted 1,432 newly licensed projects with the registered capital of US$11.04 billion, an increase of 24.3% in the number of projects and a rise of 44.5% in the capital from the similar period in 2014. The total registered capital of both newly and additionally financed projects in nine months reached US$17.16 billion grew by 53.4% against the last year’s same period. Estimated realized FDI capital in nine months of this year was estimated to gain US$9.7 billion, rose 8.4% from 2014’s similar period.
In nine months, the manufacturing industry attracted the largest number of FDI projects, its registered capital accounted for 66.3% of the total registered capital; the electricity, gas, warm water, steam and air conditioning supply took 15.3%; the real estate business represented 10.5%; other industries accounted for 7.9%.
Expectations on opportunities from TPP are improving. Many large-cap stocks have performed well since the conclusion of TPP. Insurer Bao Viet Holdings (BVH), Vietcombank (VCB), logistics Gemadept (GMD), steelmaker Hoa Phat Group (HPG) Vietinbank (CTG) and Sacombank (STB) gained between 3 and 6 per cent. Shares of textile and seafood companies also rallied as the sectors could benefit strongly from the TPP.
Financial and economic integration push also the country to adjust legal framework to adapt to new financial environment. According to the State Securities Commission's Director of Market Development Department, in a bid to boost trading volume, authorities plan to soon allow investors to short-sell shares in Viet Nam's two stock markets. The State Securities Commission (SSC) plans to submit to the Ministry of Finance within this month a draft circular, which aims to amend the Circular 74 issued in 2011 by the Ministry of Finance on short selling. Short selling was a complicated process and required strict management to make sure it does not create instability for the national stock market.The SSC would issue the list of margin-trading stocks, and based on that brokerage firms would decide which one of them could be shorted on the same day.
