The fears of coronavirus have clouded prospects for the global economy and caused difficulties for Vietnam's stock market.

Akihiko Iwatani, chief representative of Haseko Corporation in Hanoi, believes that Vietnam is the most attractive market in ASEAN for Japanese investors in particular and foreign investors in general.

Export turnover within the textile and apparel sector is forecast to reach up to US$42 billion in 2020, representing an increase of 7.7 per cent compared to the figures from 2019, according to SSI Securities Corporation.

 The dairy industry grew 0.5 per cent in market capitalisation in 2019, much lower than the average growth of 7.7 per cent of the VN-Index, according to a report issued recently by SSI Securities Joint Stock Company (SSI).

The Vietnamese steel industry is expected to face difficulties this year due to an increase in production capacity, falling demand and protectionist measures by countries to reduce imports, according to experts.

Rising medium- and long-term capital demands to meet stricter regulations on credit safety limits and capital adequacy early next year were putting pressure on commercial banks to issue bonds in the final months of the year, experts said.

Business sectors that could capitalize on the 100 million population will be set for strong growth, said an expert.

Real estate enterprises outpaced banks to issue the largest volume of corporate bonds last month, according to a newly released report by SSI Securities Corporation.

A slowdown in export growth of the foreign-invested sector could have a negative impact on Vietnam’s economy in 2020, according to SSI Securities Corporation, Vietnam’s largest brokerage house.

Covered warrants will be an alternative technical tool as foreign investors are not limited to buy the securities product and can freely trade it as domestic investors do.

A number of securities companies now are earning big money from corporate bonds.

Recent index falls could trigger another correction in Vietnam’s stock market, despite a positive long-term outlook among foreign investors.

VietNamNet Bridge - The Vietnamese stock market will have opportunities to attract billions of dollars worth of capital if it is upgraded to an emerging market. 

VietNamNet Bridge - Investors have been advised to buy equities in the context of the bear market. 

VietNamNet Bridge - Analysts have found similarity between foreign investors’ net sales in Vietnam and global capital flow trends. 

VietNamNet Bridge - Businesses are rushing to issue shares to increase their charter capital amid the stock price upswing that began last year. However, analysts warn that the movement may lead to an oversupply of stock.

VietNamNet Bridge - If everything goes smoothly, the Vietnam stock market may be upgraded to an emerging market by 2020.

VietNamNet Bridge - Vietnam stock indexes have gained new highs recently. However, the rise of large-cap stocks has stalled, while mid-caps are attracting cash flow again after a correction period.

The current rise of the stock market reminds investors of days 10 years ago, when any purchase would bring high profits to investors.