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London conference connects capital sources

Released at: 14:26, 08/07/2019

London conference connects capital sources

Photos: Hoang Xuan

UK to further promote professional capital flows from major financial centers of the world to contribute to Vietnam's stock market.

by Hoang Xuan - Minh Do

More than 200 British investors attended the Vietnam Investment Conference 2019 on July 4 in the 250-seat hall of the Haberdashers building in London, and spent much time hearing information from leaders in the financial, securities, and insurance industries in Vietnam.

The event was organized by the Ministry of Finance in collaboration with British partners to provide a practical dialogue to help British enterprises and investors better understand the performance of Vietnam’s economy and the policies and determination of the Vietnamese Government in innovation and to strengthen the trust of British investors in Vietnam’s development potential.

“Vietnam is a country with a high level of economic openness and will steadfastly and proactively integrate international policies,” Minister of Finance Dinh Tien Dung told the conference. “We are maintaining economic growth in the 2016-2020 period at an average of 6.5-7 per cent per year (in which 2019 is to be 6.6-6.8 per cent), and solid, sustainable, and green development. We continue to hold our position as a dynamic country and attractive investment destination in the ASEAN region and are participating more deeply and rising higher in the global value chain.”

Minister of Finance Dinh Tien Dung

As at June 20, the UK was the 15th-largest FDI provider among 132 countries and territories in Vietnam, with 365 valid projects and total registered capital of $3.61 billion. Projects are mainly focused on manufacturing and processing, with 116 projects and total capital of $1.38 billion, accounting for 38.3 per cent of the total, real estate, with $884.7 million and accounting for 24.5 per cent, and mining, with $701.4 million and accounting for 19.4 per cent.

In the financial market, UK investors’ capital accounts in Vietnam account for about 30 per cent of the total. At this conference, their interest focused on opportunities in Vietnam, especially the process of equitization of and divestment by State-owned enterprises (SOEs), which are being strongly promoted, and public investment projects.

Vietnam’s stock market continues to be an attractive destination for FDI flows. From 2016 till now, foreign indirect investment has been continuously net on the stock market and at a relatively high level, averaging $1.98 billion per year.

In the context of strong fluctuations in global the financial-stock situation and the trend of investors to withdraw capital from emerging markets and marginal markets, Vietnam is still a popular destination of foreign investors, with indirect investment in the first five months of 2019 standing at $1.28 billion. UK investors have indirectly invested about $944 million in Vietnam’s stock market, focusing on buying fund certificates, stocks, and bonds.

“We hope that after this forum, businesses of the two countries will have more ideas and new cooperation projects to deepen economic cooperation as well as the Vietnam - UK strategic partnership,” Minister Dung said. “The Ministry of Finance is committed to accompanying and facilitating enterprises from the two countries. Your success is also our success.”

Earlier, on July 3, Minster Dung met with UK Chancellor of the Exchequer Philip Hammond within the framework of his working visit to the UK from July 2-6.

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