HA NOI (VNS) — More than 600 foreign investors were granted stock transactional codes in the first ten months of this year, up nearly 40 per cent over the 2012 figure, according to the Viet Nam Securities Depository Centre.
Strongest interest from foreign investors was seen in March, April and May when on average 90 foreign investors were granted codes.
Not only blue chip but also small-cap and mid-cap firms attracted foreign capital. The operation of open-end funds helped foreign investors to indirectly hold blue chip vouchers
According to Cao Sy Kiem from the National Financial and Monetary Policy Advisory Council, as quoted in Dau Tu Chung Khoan (Securities Investment), the strong increase in the number of foreign investors being granted transactional codes this year reflected the overseas investors' interest in Viet Nam's stock market.
Foreign investors saw the stock market as an attractive investment in both the short and long terms, he said, adding that the proposal to raise the threshold for foreign ownership in local companies, which currently sits at 49 per cent, was a source of encouragement for foreign shareholders.
However, important factors in reassuring overseas investors included a complete legal framework and transparency. — VNS