The strong rise of blue chips created a bullish stock market last week. The demand was high for shares of leading companies, while foreign investors made big purchases.

Thy continued to buy more than sell by VND100 billion in the last trading session of the week after doing so in the 10 trading sessions before. VIC shares of Vingroup owned by Pham Nhat Vuong topped the list of shares investors hunted. 

The strong rise of blue chips created a bullish stock market last week. The demand was high for shares of leading companies, while foreign investors made big purchases.

In August, foreign investors’ net purchases reached VND2.5 trillion, while the figure was VND14 trillion by the end of August. The strong demand from foreign investors helped the VN Index increase in the first seven months of year, while striving for a 800 point peak.

Foreign investors have poured money into blue chips such as VIC, HPG of Tran Dinh Long’s Hoa Phat Group, VNM of Mai Kieu Lien’s Vinamilk, HSG of Le Phuoc Vu’s Hoa Sen Group and CTD of Nguyen Ba Duong’s Coteccons.

The common characteristic of the businesses is that they are all moving ahead with ambitious plans.

Vuong, president of a real estate group, who has succeeded with investments in retail, education and healthcare sectors, has set up Vinfast, an automobile manufacturing complex in Dinh Vu – Cat Hai IZ in Hai Phong City. With Vinfast, which will use advanced technology and run with huge capital of $3.7 billion, the hope of having a ‘Vietnamese automobile industry’ has arisen again.

Hoa Phat Group of Tran Dinh Long has attracted foreign investors with high and stable growth rates over dozens of years. Long is well known in the business community as a person who takes cautious steps. The 4 million ton per annum Dung Quat steel complex helped Hoa Phat become the world’s leading steel manufacturer.

Foreign investors are also seeking opportunities to pour money into shares in food & beverage and FMCG (fast-moving consumer goods) such as Vinamilk, Sabeco and Habeco (brewer), Masan Consumer and Vinasoy. The fields are very promising in a market with high population.

Nguyen Duy Hung, chair of SSI, has won the game of chess which lasted many years and has successfully protected Bibica brand. Hung’s Pan Food has increased its ownership ratio in Bibica to over 50 percent, higher than the 44 percent held by South Korean rival Lotte.

US$1=VND22,000

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