The Picture of Vietnam's Investment Market in 2022

The government predicts that in 2023, economic growth will slow and the risks related to recession, finance, currency, public debt, energy security, food, and information will increase. So, in the current difficult economic situation, which channel should investors choose to keep money and ensure profits? Let's find out in this article with FUNDGO!

Our country's economy recovered and grew in the first three quarters of this year. However, by the end of the year, signs of an economic recession had begun to emerge, serving as a warning not only for Vietnam, but also for the world. 

Stock market

In 2022, the stock market has faced strong downward corrections since April, with only brief recoveries in May and August. As of November 30, the VN-Index reached 1,048.42 points, a drop of 30% compared to the end of 2021. Market liquidity also tended to decrease continuously during this period, with the average trading value decreasing from VND 26.3 trillion per session in April to VND 13,017 billion per session in November. However, the market gradually recovered in the final trading sessions of the year, reaching 1,094 points on December 5, 2022. According to experts, Vietnam's stock market has several chances of recovery and growth in 2023 (about 15% to 20%). 

Real estate market

After two years of turbulence caused by COVID-19, the real estate market has yet to recover as expected, even at the end of the year, which is often regarded as the peak period for real estate transactions. The real estate sector remains second in the list of industries attracting FDI in the first nine months of 2022, accounting for more than 3.5 billion USD, or 19% of total investment capital. Registered FDI nearly doubled compared to the same period last year, but was primarily concentrated in the industrial real estate market. According to data from the Vietnam Association of Realtors (VARS), the supply of real estate is obviously declining. The absorption rate in the third quarter of 2022 was only 33.5%, a sharp decline compared to the first half of the year; transaction volume dropped by more than 50% compared to the same period last year. Despite the market's difficulties, real estate is still perceived as a dominant investment channel because it is secure and compatible with the Vietnamese mentality. 

Savings market

According to investment reports, credit demand in the savings market has been much higher than in the same period last year. Clients’ deposits at credit institutions are now more than VND 5.61 million billion, up 6.02% from the end of last year, according to State Bank statistics by the end of June 2022. Savings deposits have continued to pour into banks, following the State Bank's decision to raise the ceiling interest rate for short-term deposits of less than six months to 5% per year. This is considered an attractive interest rate, while other investment channels contain many risks or do not provide the expected return.

Gold and Money market

Domestic and global gold prices experienced significant fluctuations. Domestic gold prices are unlikely to rise if the USD/VND exchange rate does not fall, as it did in 2021. The spot gold price in the global gold market increased 0.19% to 1,795.2 USD/ounce. Gold futures prices rose 0.25% to 1,804.75 USD/ounce. Converting the world gold price at the USD exchange rate sold at Vietcombank on December 19, the world gold price is equivalent to 51.5 million dong/tael, 15.5 million dong/tael less than the retail price of SJC gold. According to experts, gold is currently not a good investment channel since the gap between the price of gold in Vietnam and the world is huge, so investors should consider carefully before buying, selling or investing in gold. 

In the difficult economic situation, it is necessary to develop a source of passive income. If you have a lot of money and want to wait for a chance to get rich in the future, you can invest in real estate. If you prefer taking risks and want to find a quick “life changing opportunity,” you can invest in stocks. On the other hand, if you don't like taking risks, don't expect to make a lot of money, and want to choose a safe channel to “keep money,” you can invest in the gold or savings market. FUNDGO expects that this article will help you better understand today's popular investment channels and make sound investment decisions.