Vietnam News is predicting that the stock market will continue to climb this week but the publication does not make clear how it has come to this conclusion. It does, however, carry comments from an executive at VNDirect, who says that low deposit interest rates as well as ongoing challenges in real estate and bonds, will make the stock market a ‘priority’ for investors. Dinh also says current currency pressure is only temporary although it’s not clear how this conclusion was reached.
For context: It’s generally understood that the bulk of the pressure on the dong is being caused by a strengthening US dollar amid rising interest rates in the US. In this context, it’s likely the dong will remain under pressure as long as interest rates remain high in the US.
Eds note: This article raises more questions than answers and should be taken with a grain of salt.