The rich get richer in Vietnam's bull market

By VnExpress   October 28, 2016 | 06:07 am PT
The rich get richer in Vietnam's bull market
A stock-market screen at a securities company in Hanoi. Photo by Reuters
Wealth keeps on growing for those at the top of the local stock market.

Vietnam is enjoying one of the best rallies since the global financial crisis in 2008, and the phenomenal gains are going mostly to individuals who are already pretty well-off on the stock market.

The combined wealth of the richest 10 individuals has increased by a staggering 85 percent so far this year to $3.7 billion. Just last year, it took 500 richest people on the stock market to accumulate that much wealth.

Despite low global growth, Vietnam’s economy is widely seen as one of the most resilient in Asia. The benchmark VN Index has gained 18.91 percent this year.

"Vietnam remains one of the bright spots in Asia," CNBC quoted Vishnu Varathan, senior economist at Mizuho Bank, as saying.

According to the State Securities Commission, Vietnam has outperformed other Southeast Asian markets to become the fastest growing market in the region in 2016, with a market capitalization equal to about 55 percent of the country’s gross domestic product.

Money in the stock market is growing ever more concentrated in the hands of just a few people, official statistics show.

Local media on Thursday reported that Trinh Van Quyet, 41, chairman of property developer FLC Group, has become Vietnam’s second dollar billionaire. VnEconomy values Quyet at $1.02 billion, versus $1.39 billion for the country’s richest person Pham Nhat Vuong, chairman of real estate conglomerate Vingroup.

Stocks are beating gold and real estate in terms of returns, broker Phan Dung Khanh told Thanh Nien newspaper.

But most locals are sitting out. Only about 2 percent of Vietnamese put money in stocks as of the end of September, according to the Vietnam Securities Depository.

Related news:

Vietnam stock market listed among best performers in Asia this year

Vietnam's stock market outperforms ASEAN rivals

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