Strong domestic expansion benefits the stock market

Foreign investors are attracted to the unexpectedly robust growth of the Vietnamese market, according to experts. According to statistics, over the past month, net foreign purchases on the Ho Chi Minh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX) totaled more than 4.18 trillion VND (178.59 million USD).

Vietnam's inflation is currently at a "acceptable" rate, according to Tran Khanh Hien, head of the analysis division at VNDIRECT Securities Company (VNDIRECT). She continued by stating that the Vietnamese dong's continued strength in the face of a rising US dollar has also helped to boost foreign investors' confidence in the Vietnamese market.

VinaCapital's chief economist, Michael Kokalari, asserted that domestic consumption will be the main engine of the Vietnamese economy. He added that, far exceeding the 7% growth his company had previously predicted, retail sales increased by 7.9% in the first half of this year and by an astounding 11.9% in the first seven months.

Vietnam has high growth prospects based on its large local workforce, low minimum wage, and steadily increasing per capita income, according to the Asia Plus Securities (ASPS) of Thailand, which earlier this year recommended increasing investment in the country.

Vietnam's GDP growth is anticipated to be 5-7% annually until 2028, outpacing both Singapore and Thailand, according to ASPS. Foreign investors net bought 615.71 billion VND on HoSE and HNX at the session's end last week, with shares of SSI Securities Corporation seeing the most trading (25.4 million shares).