Vietnam Holding says its latest investment survey has indicated a strong appetite remains in the country in spite of a bumpy few months for emerging markets.
At 476,000, May recorded the highest amount of new accounts in the Vietnamese stock market’s 20 years of existence, it said.
Craig Martin, chairman of Dynam Capital, which manages the Vietnam Holding trust, added: “In the second quarter of 2022, more than 1.2 million new retail stock trading accounts were opened in Vietnam – double the level in the first quarter.
“Although average daily trading volumes are lower than the record levels set in 2021, they are still several times the volumes of 2019.
“The foreign investor flows are less than 8% of the stock market, half the level of 2019, so the five million or more domestic retail investors are clearly a force to be reckoned with.
“Income levels are rising, more consumers are using their digital devices to track local and global news, learn new skills and make investment decisions on-the-go. The rise of the retail investor has only just begun.
Listed on the London Stock Exchange, VNH is a close-ended Fund focused on companies in Vietnam that demonstrate a commitment to environmental, social and governance (ESG) principles.
Dynam notes that although Vietnam’s equity market was volatile during the first half of 2022 the country’s economy is well on the road to recovery, with 7.7% year-on-year GDP growth in the second quarter.
The Vietnamese Retail Investors Study 2021-2022, the first report of its kind, engaged approximately 1,000 participants from August 2021 to May 2022.
Despite the market’s poor performance during May 2022 as the fourth survey was conducted, investors maintained high levels of confidence and did not lower their profit expectations, said Dynam.