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Investors play it safe with shares, savings

Update: December, 16/2013 - 08:53

HA NOI (VNS)— Shares and bank deposits are seen as being safe investments in 2014, said banking and financial experts during an online-investment forum hosted by BizLive.

Quach Manh Hao, head of the finance and banking department at Ha Noi National University's Economics College, explained that in the current context, if an investor considered interest vs risks, savings appeared to be a popular choice.

However, Hao argued that attempts to revive the economy were supposed to be implemented and take effect in 2014, which would set up better expectations on the stock market and the value of securities might then rise.

"Thus, if you are really seeking opportunities, savings and shares suit you, albeit I rather prefer shares of high liquidity," Hao said.

Meanwhile, Le Xuan Nghia, former deputy chairman of the National Financial Supervisory Committee, advised investors to have alternative channels for money. One part should go to the stock market, which naturally responds to the first signals of economic recovery. The other might be located at banks to enjoy interest rates that secure their sum. Regarding the savings option, the Central Institute for Economic Management (CIEM)'s Deputy Director Vo Tri Thanh added that the central bank monetary policy and foreign exchange appeared to be more supportive for Vietnamese dong than for the US dollar.

However, Thanh remains concerned that risks would still be present because of attempts to revive the economy through public investment, which might result in unstable factors due to ineffective policy management and collaborations. The potential lack of stability would then reduce the attractiveness of the dong. While experts did not make clear about the possibility of a strong recovery on stock markets, they agree that the hastened reform of State-owned enterprises and expanding free trade agreements would encourage capital inflows. — VNS


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