Securities investments bring high profits in 2016

The VN Index has increased by nearly 15 percent this year, while investments in gold, bank deposits, real estate and the US dollar brought a profitability ratio of less than 10 percent.

Maybank Kim Eng Securities cited a Bloomberg report on the profitability ratios of investment channels in 2016 as showing that investments in securities brought the highest profits.

Securities topped the list of most profitable investment channels with the VN Index increasing by 13.4 percent in the last 11 months, followed by gold with the price increase of 9.7 percent per annum.

Bank deposits were at the third position with an average interest rate of 6.5 percent per annum.

Meanwhile, real estate was less attractive with a profitability ratio of 5.5 percent and the US dollar was the most disappointing investment channel with 1 percent only.

Maybank Kim Eng’s CEO Kim Thien Quang said the Vietnamese stock market was becoming more attractive to foreign investors.

Quang cited the latest report of the World Bank released on December 5 as showing that Vietnam’s GDP growth rate may reach 6 percent in 2016 and 6.3 percent in 2017.

Some investors have doubts about the reported profitability ratios, raising a question about why foreign investors recently sold stocks in large quantities if they found Vietnam’s stocks attractive.

Some others suggested reconsidering a profitability ratio in the real estate investment channel, saying that 5.5 percent was lower than in reality.

Le Anh Tuan, deputy CEO of Dragon Capital, confirmed that foreign investors have sold stocks in large quantities with a total net sale of $298 million, the highest level in the last few years.

However, he said, the behavior does not show the big picture, and it is necessary to also consider foreign investors’ purchases of bonds and stocks issued to specific subjects.

According to Tuan, the total value of bonds and stocks issued to specific subjects that foreign investors have bought is up to $950 million.

The figure is much higher than the net sale of $298 million, which means that cash inflow is very strong.

The expert affirmed that securities remain the most investment channel compared to gold, dollars and real estate.

Regarding the profitability ratio in the real estate sector, Tuan said the ratio of 5.5 percent is just an average level, while the profitability ratios vary in different market segments.

Apartments, for example, bring stable but not high profits. Land and houses have seen prices increasing sharply. In districts 2 and 9 in HCMC, for example, the price of many land plots has increased by 50-70 percent this year.

Chi Mai / vietnamnet