Where to Invest 1 Billion VND: Dr. Nguyen Tri Hieu Warns, “Don’t Follow the Crowd”

During the “Stock Upgrade Talkshow: New Heights, Big Opportunities” organized by the Labor Newspaper, Dr. Nguyen Tri Hieu was asked: if you had 1 billion VND at this moment, would you choose gold or stocks? According to Dr. Hieu, 1 billion VND is not a substantial amount in the investment market but holds significant value for the majority of the population. He shared, “With a capital of around 10 billion VND, investors can engage in multiple channels simultaneously, such as real estate, gold, or stocks. However, 1 billion VND remains a considerable sum for most people, making the question of where to invest highly practical.”

Therefore, allocating this amount requires careful consideration rather than merely following trends or emotional impulses.

Dr. Hieu noted that individual investors currently have six mainstream options: stocks, gold, real estate, foreign currency, bank deposits, and cryptocurrencies. Each channel has its unique characteristics, potential, and risks, necessitating careful evaluation in specific contexts.

He emphasized, “Before investing, investors must define three fundamental goals: first, capital safety—preserving the principal; second, profitability; and third, liquidity—the ability to quickly convert into cash to meet other needs.”

For effective decision-making, he suggested applying a scoring method or creating a comparison matrix for each channel based on the above criteria. “Investment decisions should be based on scientific calculations, both quantitative and qualitative, rather than emotions or trends,” he analyzed.

From a current market perspective, Dr. Hieu observed that stocks present numerous growth opportunities as market liquidity improves, foreign investors return to net buying, and many listed companies report positive earnings.

Meanwhile, gold prices are highly volatile. “In just one week, gold prices dropped from 135 million to 132 million VND per tael. The gold market is currently unpredictable, influenced by international interest rates, the USD, and global investor safe-haven demand,” he stated.

Foreign currencies have shown greater stability as the U.S. Federal Reserve (Fed) cuts interest rates, reducing pressure on exchange rates. Bank deposits, after a prolonged period of low interest rates, have begun to rise again. Dr. Hieu noted, “Credit growth exceeded 10% in the first eight months, while capital mobilization reached only over 7%. This has led some banks to raise interest rates to balance liquidity, offering safer options for risk-averse investors.”

Notably, cryptocurrencies—considered high-risk—are gaining significant attention following the government’s resolution on digital asset development. “In the near future, digital currencies will become a very vibrant market in Vietnam,” Dr. Hieu predicted.

Another crucial factor, according to Dr. Hieu, is aligning investment choices with age and personal circumstances. “Younger investors can tolerate higher risks since they have more recovery opportunities if they fail. Conversely, older individuals should prioritize safety,” he advised.

He also highlighted differences in financial goals. For those aiming to preserve capital for family needs, bank deposits or gold may be more suitable. In contrast, those willing to take risks for higher returns could consider stocks or even cryptocurrencies.

In conclusion, Dr. Hieu recommended, “Investing 1 billion VND requires meticulous planning and avoiding herd mentality. Even in stocks, blindly following others without analysis carries significant risks.” According to him, investing is a long-term process demanding patience, discipline, and knowledge. Individual investors with limited capital must be especially cautious, as each misstep can have substantial consequences.