Vietnam top choice for investment

JP Morgan Chase Bank has forecast Vietnam’s economy will continue to grow stronger this year and the country will become a top choice in the region for investors.

David G. Fernandez, managing director of JP Morgan Chase Bank in Singapore, said Vietnam will be the number one (finance market) in his priority list for investment in 2007. The Vietnamese market has sent out a positive signal for investors and the bank and its clients could increase investment in the country.

Fernandez, who visited Vietnam six times last year to make a country report on Vietnam’s investment environment, said during his recent visit that the local capital market would undergo a lot of changes this year with more companies to issue and trade bonds on the stock market.

There are signs of an economy picking up steadily and growing attractive to foreign investors, he said. Three years ago, the bank’s clients were interested in foreign currency bonds issued in Vietnam but they now pay attention to those issued in Vietnamese dong, as the local market is buoyed by two factors: softer interest rates and stronger dong. He forecast the local currency will rise in 2007 and appreciate about 0.5% against the U.S. dollar.

According to Fernandez, with its WTO membership, Vietnam can attract foreign investors through its more liberal policies and the country will become an emerging finance market for foreign investors.

Vietnam’s economy is forecast to grow 8.3-8.5% this year against 8.2% achieved in 2006.

(Source: SGT)