Vietnam’s financial market affected by external factors
The unpredictable accelerations in world's market recently have affected financial markets in many countries and Vietnam is no exception.
In recent weeks, the Fed’s interest cut and trade tensions between the US and China as well as Japan and the Republic of Korea have been grabbing headlines.
The unpredictable accelerations have affected financial markets in many countries and Vietnam is no exception.
Affected by the 5.5 percent decrease of Dow Jones Industrial Average in the recent two weeks, the VNIndex has reduced by 3.34 percent. This sudden decrease has a detrimental effect to many Vietnamese investors’ stock portfolio.
Red has dominated the securities market for two weeks with low liquidity and foreign investors’ tendency of withdrawing capital.
Besides the securities market, currency and remittance markets are also under pressure due to the Fed’s interest cut and Chinese Yuan devaluation.
However, according to insiders, the volatiles are under control as Vietnam’s foreign currency reserves are still abundant and the valuation of VND upon a basket of different currencies.
The impacts of world trade accelerations on domestic finance markets are undeniable.
According to experts, the impacts will channel investment to safer options, such as gold and bank savings. Insiders also say this might be a good time for buying in and long-term investment.-VNA