|09:50' 15/11/2008 (GMT+7)|
Any time a stock market falls over 60 per cent within one year, you must ask if an opportunity is emerging or whether the coffin is truly being lowered into the ground. As one door closes, another one rich in opportunity opens
As one door closes, another one rich in opportunity opens
This message, of Vietnam’s resilience, is what VinaCapital will deliver to foreign investors at our 2008 Investor Conference, to be held 10-11 November in Ho Chi Minh City. The conference will gather investors and industry experts from Vietnam’s top companies, to discuss market conditions and trends. This year, we will not have the luxury of telling investors that huge returns are just around the corner. It will take time for the market to rebound.
VinaCapital’s three largest funds are closed-end funds that trade on the stock exchange. As such, even if their investments are sound, they are subject to market sentiment that can see their share prices rise and fall regardless of our assets here in Vietnam. And this is what has happened in September and October of 2008, market sentiment fell sharply and our funds saw their traded values plummet.
For the investments we will make soon, our choices will be critical in terms of protecting shareholder value in the short term and building wealth in the long run. VinaCapital will continue to stay away from export-oriented investments. We have not really focused on this sector in the past, and will continue to look first to companies that promote and benefit from domestic economic growth.
Earlier I invoked Rothschild’s quote about ‘blood in the street’. To be clear, no one wants to see chaos in world financial markets, and we should remember that real human beings have suffered because of the mortgage crisis in America and the spread of the credit crisis around the world. But in troubled times there is always opportunity, and investors should always view their role as searching out the best way to grow their money and, by extension, grow national economies.