ASEAN KEY DESTINATIONS
Safe to invest in property, savings
Money should go into bank deposits or the property market as the economy is warming up and these investment channels appear safe and attractive enough, experts said.
Viet Nam is aiming to control the inflation rate at below 7 per cent. It is, therefore, expected that the deposit interest rates would not increase much, and will hover around 5 to 8 per cent yearly. However, with the investment scenario being unclear, the people may play it safe with savings.
The advice is supported by the State Bank of Viet Nam's announcement earlier this year, which confirmed that they were determined to maintain the strength of the Vietnamese dong.
Central Bank Governor Nguyen Van Binh said, "The consistency of the monetary policy will continue in the coming years. Then we can confirm to those who have deposited the Vietnamese dong in banks, and to those who haven't, that they should be more confident about depositing their money in banks. This investment channel is, indeed, secure and attractive."
Vo Tri Thanh, Deputy Head of the Central Institute for Economic Management (CIEM) said that regarding the central bank's strategy, the policies might be more supportive of the Vietnamese dong.
Determined to hold a consistent and stable monetary policy, experts looked forward to an improvement in public confidence in the local currency.
Nguyen Hoang Ha, a depositor at Vietcombank, said: "I choose to secure assets in Vietnamese dong savings. The interest rate is not very high but it's rather more stable than anything else." She added that it's easier to exchange the Vietnamese dong with foreign currencies, than gold with currencies.
However, Nguyen Hoang Hai, General Secretary of the Viet Nam Association of Financial Investors argued that the people should not put all their eggs in one basket. He suggested putting 50 per cent of the assets in banks and the remaining into alternative channels.
The property market is seen a potential alternative destination.
Experts said the local property market's prospects are looking a little bright and busy as it realigns offers for investors and gets ready for some stellar growth during the season.
Investors who have always viewed the purchase of property as a profitable, long-term investment channel, now have a wide range of choices opening up before them.
The prices of property projects have dropped drastically to levels that buyers will inevitably find irresistible. Since property developers are running against time to sell their projects and expedite sales, they are presenting several promotional programmes, such as offering lower price points, long-term payment schedules and simpler buying conditions.
These incentives will attract buyers, despite the current frozen property market.
Viet Nam's economic development is looking more promising and positive this year, said Vu Viet Ngoan, Chairman of the National Financial Supervisory Committee. It is said to be the right time and a good opportunity for people to invest, especially those who have a real need for housing.
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