- Mr. Dominic Scriven said that Vietnam’s stock market will attract more foreign investors because this is a worthy place for foreign investors to invest.
- He also noticed that investors in Vietnam still rely heavily on mortgage credit.
Chairman of Dragon Capital Fund Management Company – Mr. Dominic Scriven shared that Vietnam’s stock market (stock market), although only 20 years of development, has passed is quite solid. He hopes that with sustainable development, Vietnam will attract more foreign investors than domestic investors because this is a worthy place for foreign investors to invest.
Dragon Capital was established in 1994 and has been with Vietnam’s stock market since the first days of opening. In July 2000, the Vietnamese stock market started to have relatively small transactions with only 2 listed companies, but now there are more than 1,600 companies, along with a variety of bond derivatives markets. Stocks, OTC is born.
“I think that what Vietnam has done in the past 20 years is quite successful and the role of the capital market of Vietnam has been identified as a key to the economy, a key for the financial sector”, Mr. Dominic shared.
Mr. Dominic believes that the capital market plays a key role in economic development.
Chairman Dragon Capital said that Vietnam’s stock market has “gone from zero to number”, creating “life” for the concept of stock market. Not only creating life, Vietnam also has the responsibility to nurture and develop the market both in depth and breadth.
Besides the long-standing banking system, the capital market also plays an important role in the economy through the stock and bond markets … Mr. Dominic thinks that the scale of the capital market is already equal to that of the banking market. stock for the past 20 years. Therefore, the potential and future development of the capital market is very positive and has great mission.
Investors in Vietnam rely heavily on mortgage credit
Talking about the fund industry, Dragon Capital Chairman affirmed that the investment fund was one of the original subjects and a development member of the stock market. However, there was a period when the fund management companies (CTQLQ) was a bit excessive, exceeding 50 units. Through the stages of restructuring and waste disposal, there are only a handful of relatively strong companies on the market.
“But what I want to say is that the size of the QMS in general is not in line with requirements. In other words, looking at daily securities trading, such as on the bond market, commercial banks are still the main players and the role of funds is almost absent. Or as for stock trading activities, the main actors in business investment include business owners, foreign investors, Vietnamese investors, but mainly individual investors (including and this component relies heavily on mortgage credit. Foreign investors make up a certain but not large part due to many reasons. Therefore, we also see the role of funds in daily securities trading is not much, ”Mr. Dominic felt.
Dragon Capital Chairman realized that the role of the fund management company in securities trading is not much.
He also said that if you want to have a market with enough participants, especially professional, professional and large-scale investors, it is impossible not to have strategic management programs. These must be the strategic management agencies of Vietnam, at home, not abroad.
In order to attract interest in QM, Chairman of Dragon Capital gives two main points to convince investors.
The first is that an economy must have a certain level of development in order for people to have the need to invest in financial instruments. If the level of development is still low, people do not have the above demand because they still have to worry about more urgent needs such as food, housing …
Next is the management agencies must have the task of offering products suitable for the needs of investors with reasonable fees. In particular, the management programs need to create a wealth of experience, professionalism and reputation in the investment world, but this is not easy.
“In addition to the efforts of investment funds, with the new Law on Securities issued and effective from January 1, 2021, I and those interested in this field look forward to early management. to promulgate Decrees and Circulars guiding the early operation of the Law. This is the most important thing, and for other things, what will come, “added Mr. Dominic.