If Decree No. 24/2012/NĐ-CP on gold business activities is amended to remove the monopoly on gold bullion, the price of gold bullion in Vietnam may be substantially affected and approach world gold prices due to increased supply. According to the world gold price listed on KITCO updated as of 15 April 2024, there is a price difference of about 11 million VND per tael between domestic and world gold prices if converted at the Vietcombank exchange rate, excluding taxes and fees.
Although volatilities in the global market may continue to increase and lead to a rise in world gold prices in the next couple of months according to a report from JPMorgan, the potential amendment of Decree 24 will also be an important factor for investors to consider when investing gold in Vietnam.
There is still room for the stock market to grow according to current low interest rates and the Vietnam’s government efforts to disburse public investment capital, offering promising investment opportunities.
However, stocks may face increased volatility and risk amidst current global economic uncertainty and interest rate changes. Investors considering stocks should conduct thorough assessments of individual companies, sectors, and market conditions to identify growth potential while managing risks effectively.
The real estate market has been stagnant for quite some time; however, the apartment building market is thriving, and land plots are becoming active again amid low interest rates. Real estate investment presents opportunities for long-term appreciation and income generation. Nevertheless, investors must be cautious to avoid scams and identify the right investment opportunities. Additionally, factors such as regulatory changes, supply-demand dynamics, and economic conditions should be carefully evaluated before investing in real estate.
It is important to highlight that the choice of investments (gold, stocks, real estate, or other assets) depends on investors’ individual financial situation, investment objectives, and risk tolerance. It is essential to consider investment goals and conduct thorough research or consult with a financial advisor before making any investment decisions. Also, diversifying investment portfolios across multiple asset classes can help investors mitigate risk and optimise returns in the long term.
Story: Dr Dao Le Trang Anh, Lecturer in Finance, RMIT Vietnam
