The total value of requested shares ranges between VND150bil and VND200bil a day. In the previous weeks, Deutsche Bank just ordered shares listed at the HCM City Securities Trading Centre. But now it has asked for the securities company’s advice on buying shares listed at the Hanoi Securities Trading Centre (HASRC) as well.

“No problem. We can help you in buying shares at HASTC as well,” the securities company replied.

And Deutsche Bank continues pumping its money into Vietnam’s stock market.

There are more and more big players like Deutsche Bank AG London approaching Vietnam’s stock market. Citigroup arrived at the market sooner than Deutsche Bank, though it has not made as many deals as Deutsche Bank.

Foreign investment funds have also jumped on the bandwagon. Vietnam Holding Ltd, for example, has bought 900,000 shares of Binh Minh Plastics Company. Dragon Capital also buys and sells these days for the investment funds it is managing, though it complains that the prices of shares are ‘too hot’.

Meanwhile, the Vietnam Opportunity Fund managed by VinaCapital has been injecting big sums of money in coal, rubber, seafood companies, and it is now hunting for bank shares.

Experts said that investment funds now do not compete with each other in raising funds any more, because it is now very simple to raise funds to invest in Vietnam. They are now just competing in management skills and on where to put money in.

The experts said that they can see a new tendency in making investments in securities. The Hong Kong and Shanghai Banking Corporation (HSBC) is now shifting its investment field from shares to bonds, and so is Dragon Capital. An official from Dragon Capital gave a ‘diplomatic explanation’ of the company’s decision: bonds are much safer to invest in.

However, everyone may understand that it is a good move. Vietnam now has good prestige on the international market, while its financial market has improved. It is clear that international credit rating firms, sooner or later, will give higher credit rankings to Vietnam. And once Vietnam’s credit ranking has improved, the interest rates for Vietnam’s bonds will be lower. Currently, the interest rates for the Government bonds are relatively high, at more than 10% in several kinds of bonds. Therefore, the investors will be able to get fat profit if they inject money in bonds. Moreover, investors do not have to pay as much in management fees for investments in bonds as they have if making investments in shares. They can buy several thousand billions worth of bonds at once, while they only can buy several thousand billions worth of shares over the course of many transactions.

Source: TBKTSG