Recent market fluctuations have left many investors confused and perplexed, as they struggle to determine the safest and most profitable investment channels.
Investors Express Concerns
As an individual investor, Mr. Luu Ngoc Khanh (Thanh Tri, Hanoi) has been investing in stocks for many years alongside his food business. However, for the past two years, this market has been experiencing continuous volatility and a downward trend, leading to fluctuations in his cash flow.
“I want to sell stocks to invest in other channels, but it’s difficult to sell and prices are low. Even if I manage to sell, I hesitate because I’m not sure which channel is effective, such as gold, real estate, etc.,”
said Mr. Khanh.
Ms. Nguyen Thi Dung (Ha Dong, Hanoi) shared that in recent times, she has chosen to invest in savings and gold as safe havens. However, the recent performance of these channels has left her quite confused.
“With bank interest rates at a low level, I decided to withdraw money to switch to another investment channel. Personally, I want to invest in gold, but recently the gold price has been fluctuating sharply, rising and falling erratically. So I don’t know whether to buy or sell to switch to another channel. I’m considering where to invest next,”
Ms. Dung said.
Many investors are hesitant to choose a safe investment channel.
Commenting on the stock market, Mr. Dang Tran Phuc, Chairman of the Board of Directors of AZfin Vietnam Joint Stock Company, analyzed that the cash flow participating in the stock market increased significantly in the first quarter of this year.
It is estimated that outstanding loans at securities companies at the end of the first quarter of 2024 amounted to over 200,000 billion VND, an increase of about 26,000 billion VND compared to the end of last year. Notably, the amount of deposits from investors at securities companies is also estimated at over 100,000 billion VND.
“Compared to the end of 2023, the deposit balance has increased by more than 20,000 billion VND. This is the highest balance of investor deposits at securities companies in the past two years. Many leading securities companies have recorded an increase in investor deposits in their securities accounts from 2,000 to 3,000 billion VND compared to the end of 2023… This clearly shows that the daily trading value is increasing and the deposit balance at securities companies is also rising,”
said Mr. Phuc.
In addition, a series of forecasts predicting growth in the stock market in the second quarter and the remaining months of 2024 may boost investor confidence in this channel. In the first quarter of 2023, the prices of many stocks increased significantly, helping many investors earn profits far exceeding the interest rates of bank deposits for the whole year. However, overall, the market increase was not too strong.
Along with the positive first-quarter 2024 business results of many listed companies, which exceeded the lows of the same period last year, and the government’s determination to upgrade the stock market, the stock market is expected to continue to grow.
“With the current interest rate environment, saving bank deposits brings low efficiency, while the stock market shows many positive signals. Therefore, investors should take advantage of this time to calculate and accumulate additional shares, especially blue-chip shares with positive business results but whose prices have been adjusted down or shares of leading enterprises in the industry that have good first-quarter business results and valuations that are lower than the historical average,”
said Mr. Phuc.
Experts believe that the stock market is also a promising investment channel in the coming period.
Regarding gold investment, Mr. Huynh Trung Khanh, Vice Chairman of the Vietnam Gold Business Association (VGTA), said that the continuous increase in gold prices since the beginning of the year also indicates an increase in demand for buying both globally and in Vietnam.
“In the Vietnamese mindset, gold is not an investment channel but is often chosen as a channel to accumulate assets and take refuge when investors are concerned about geopolitical instability or economic recession. Therefore, the amount of money allocated to gold is usually not large and it should not be considered an investment channel,”
said Mr. Khanh.
For the bond market, Dr. Nguyen Tri Hieu, an economic expert, believes that in recent times, this investment channel has almost “frozen”, with investors not returning to the market and possibly not returning this year. The corporate bond market has not yet regained investors’ trust. Therefore, in the short term, bonds are an investment channel that does not have a “bright future”.
Real estate is considered by experts to be a fairly effective investment channel in the coming period.
“Saving in banks, despite low interest rates, is still the safest investment channel at present, in the context of the stock and bond markets still facing difficulties and not regaining investor confidence, while the real estate market, although showing signs of improvement, is not yet clear. The gold market is also highly volatile and difficult to predict,”
Dr. Nguyen Tri Hieu expressed.
“Some segments are also showing signs of warming up again. Furthermore, some enterprises have sales policies with attractive and flexible payment options. In 2025, when the Real Estate Business Law, the Housing Law, and the Land Law take effect, the real estate market will enter a new phase, and prices of real estate products that have already been developed will increase. Investing at this time, investors will have the opportunity to choose products with suitable prices and complete legal documents,”
said Mr. Dinh.
