HA NOI (VNS)— The number of foreign investors opening accounts for stock trading in Viet Nam is growing, indicating that Vietnamese equities continue to attract foreign investors.
Statistics showed that 40,000 new accounts were opened by foreign investors in 2013. Foreign investors held a total of 1.3 million accounts by the end of December, an increase of 56 per cent over the previous year.
Last year, the Viet Nam stock market also witnessed active transactions from foreign sectors, although the US Federal Reserve's (Fed) tapering increases the possibility of capital outflows from emerging markets.
Foreign investors remained net buyers in the stock market, with the net value of purchases rising to VND6.8 trillion (US$323 million) last year, 53.1 per cent higher than 2012's figure.
Last year was the third straight year that foreign portfolio investments showed an increasing trend.
According to BIDV Securities' analysts, foreign investors increased their purchases in the first quarter of last year and sold in June, July and August. However, foreign investors turned buyers from September and remained that way until the end of the year.
So far this year, foreign investors have been net buyers of shares, a trend that has helped the benchmark indices gain.
The largest stocks by capitalisation and liquidity are likely to be targeted by foreign investors, experts said.
Stock analysts also noted that the proposed increase in the foreign investment limit in a company's shareholdings, from the currently 49 per cent to 60 per cent, is likely to be approved soon. Once that legislation comes into effect, the interest from foreign investors is set to surge. — VNS