At the recent VIR seminar on Vietnam's stock market, subtitled 'New dynamics, new opportunities', on July 23, Dang Thanh Tam, chairman of the board of directors of Kinh Bac City Development Holding Corporation, shared his insight on the strengths of the domestic stock market.

Dang Thanh Tam, chairman of the board of directors, Kinh Bac City Development Holding Corporation

"Many foreign investors see Vietnam as an investment paradise amidst the current global economic chaos. While many places are experiencing conflict, Vietnam remains a peaceful place and also serves as an export hub for the world," said Tam.

The global economy is currently experiencing many instabilities. Major markets are caught in a whirlwind of fierce economic competition. In the US, the upcoming elections add further uncertainty, with Tam saying, "Regardless of the election outcome, the US is likely to open up even more to Vietnam. This will be advantageous compared to some other markets. Vietnam has signed many trade agreements with the US and Europe. These agreements have laid the foundation for Vietnam to expand investment and markets."

These agreements have been a major factor in sustaining Vietnam's growth recently, and the country is expected to continue benefiting from this wave of investment shifts in the near future. Since the beginning of the year, Vietnam's exports have surged, and foreign direct investment remains high. Vietnam's stable political and economic conditions, along with balanced internal and external affairs, have helped shield its economy from global economic downturns.

Despite the opportunities from shifting capital flows, the challenge for investors is the ability to seize these opportunities. One limitation of the Vietnamese economy recently has been the lower-than-expected credit growth, reflecting constrained domestic growth.

"I believe that domestic businesses and investors need to invest with confidence. The current global situation is favourable for Vietnam. I feel that some investors are still hesitant, leading to reduced investment and slower credit growth. In this context, the domestic market needs to develop further," explained Tam.

Additionally, Tam highlighted that some major foreign investors have yet to make moves into Vietnam, raising questions about the readiness of Vietnamese businesses. The lack of high-tech human resources is a critical issue that needs addressing. Before foreign businesses arrive, Vietnam must invest in training its workforce.

"The public and private sectors need to be prepared to welcome new investment, as geopolitical shifts bring many changes. Educational institutions should tackle this issue, focusing on training high-tech personnel. Regulatory bodies also have to deliver policies that encourage, promote, and allocate budgets for this purpose," said Tam.