In an on-line survey of 4,449 Viet Nam Economy Newspaper readers, securities remain the public’s most favoured investment channel, a cause for some concern among bank executives.
About 46.6% of respondents said they would buy stocks this year, while another 21.9% indicated they would invest in real estate.
The on-line newspaper attributed the trend to ongoing expectations the market will grow in 2007, despite concerns the Government may take measures to tame the current bull run.
The survey is also a warning to commercial banks that are trying to build capital reserves.
Only 5.3% of respondents said they would increase bank deposits, a trend that is in line with forecasts by analysts earlier this year.
In an interview with Viet Nam News, a senior executive with the Ha Noi Building Commercial Joint Stock Bank (Habubank), who requested anonymity, said the flow of capital toward securities will have an impact on the financial sector.
"Of course when the market is growing well, as it is now, bank deposits decline," the executive said. "On the other hand, outstanding loans may increase as investors take out loans to buy securities."
Vietnamese no longer invest so heavily in gold, foreign currencies and real estate, said Bui Viet, a director at EAB Securities Company in a recent interview. People now consider these types of investments a long term, not a short term, profit making venture, he said.
This long term portfolio adjustment, though, may not be all that bad for banks, say analysts, especially in terms of the property market where consumers still need new loans.
In the survey, 9.8% of readers said they would invest in gold, while 3.5% reported they would buy foreign currency, both of which are traditionally popular stores of value.
Source: VNS
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