SME Financing in Vietnam: An attractive investment opportunity amidst COVID-19

Fluctuations in Q1

Decrease more
than -30%

• The VN-Index recorded a drop of more than 30% in Q1 due to investors’ concerns about the disease situation and the sell-off momentum of foreign funds despite the government’s economic support packages being activated. 
• The market is quite unstable during the epidemic phase. Read more »

**Low liquidity

• The market has traded slowly, especially with the lowest apartment supply in the last 5 years. Read more » 
• Most investors are afraid of investing due to long tenor commitment, low liquidity, large investment capital and unpredictable fluctuations due to disease. 
• Compared to the end of 2019, the average primary price of the apartment segment in Ho Chi Minh City tended to decrease. Read more »

Below 5%/ year for less than 6 months tenor

• It is not really an attractive investment channel because the interest rate of term deposits has dropped sharply because the government regulates to help businesses to overcome difficulties during the epidemic phase. 
• It is safe to keep cash as term deposit; however, interest rate is only 2-3% greater than inflation.

8-9.5%/ year

• Interest is higher compare to Term Deposit 
• Bonds with high interest rate pose risks 
•  Prestigious corporate bonds are attractive to investors but the interest rate of 8-9%/ year is not really attractive.

+12%

• Low investment capital, flexible investment time 
• Easy to buy and sell, high liquidity 
• Gold is a good channel for investors during the economic crisis and war, but the price of gold is high and unpredictable fluctuations in the Covid-19 epidemics.

1-1.5%

• Signal price increases this time of the green note in the short term only because after disease goes down, the economy returns to normal, the confidence of investors will return. Once the disease situation is over, the USD price will still fluctuate around 1-2%/ year
• Vietnam has the strength of huge foreign exchange reserves. Read more »

Above 14%*/ year

• High and fixed profit, minimum 14%/ year. 
• Profits do not depend on performance of the stock market, real estate. 
• Diversify portfolio with different industry companies. 
• Short investment term of 1-3 months helps to proactively invest capital. 
• 100% online transactions to save time. 
• Majority of Validus partners are less affected by the disease situation due to industry groups (Necessities, food and agriculture supply to the domestic market).