Foreign institutional investors have continued to put money into the Vietnamese stock market, helping to lift up local investor sentiment, experts say.
Phan Duc Trung, chairman of fund management firm FPT Capital, said Vietnam was still considered a growing market and foreign investors were looking for opportunities here, even though capital inflows have slowed as a result of the global economic downturn.
Foreign investment has invigorated the local stock market, Trung said. "Many foreign partners investing in FPT Capital highly value the Vietnamese market"¦ Some of them have continued to boost investment in Vietnam."
According to the Vietnam Securities Depository Agency, 20 new foreign institutional investors were licensed in May to trade Vietnamese stocks, raising the total number to nearly 1,300. The agency also said 12,829 foreign individual investors have received permission to trade stocks, with 79 licensed last month.
One of the newcomers, Vietnam Dream Fund, has invested in Vietnamese stocks since June 1. The investment fund, capitalized at US$100 million, was formed by Japan Asian Group's United Investment and Vietnam's MB Capital.
Foreign investors have been net buyers of VND6.3 trillion of local stocks so far this year, according to VISecurities Company. They were net buyers of many Vietnamese blue-chip stocks.
Huynh Anh Tuan, general director of SJC Securities Company, said foreign investors' stock purchases keep the stock market stable and thus served as a psychological boost for local investors.