On 13 September 2021, VinaCapital Ventures, the technology investment platform of VinaCapital Group, announced that it has invested in GlobalCare, an insurtech company that provides solutions for the sales and administrative processes for insurance agencies and business partners selling non-life insurance policies.
By now you are likely aware of the lengthy lockdowns in effect in most cities in Vietnam and the significant restrictions in Ho Chi Minh City. The international press has written about the restrictions and their impact on both economic output and society overall. Nevertheless, it is encouraging to see the pace of vaccination accelerate in Vietnam and in HCMC specifically. In the last few weeks, certain officials have also signaled a willingness to move away from the previous “zero covid” approach that had worked so well prior to this outbreak, and we are encouraged by how the government and businesses have been able to adapt to this evolving situation. In today’s insight, VinaCapital’s Chief Economist, Michael Kokalari, touches on this potential shift in approach and shares a few anecdotes on how companies have adapted their business models to succeed in this environment.
As you may have read, earlier this week the government announced new, restrictive social distancing measures in Ho Chi Minh City and applied a numerical risk rating criteria within the city to more effectively manage the spread of COVID. In today’s insight from VinaCapital’s Chief Economist, Michael Kokalari, we explain how the new restrictions impact HCMC’s inhabitants and the economy. Thanks to the strong actions and new criteria, there is now a roadmap to easing restrictions and gradually re-opening HCMC. While this fourth wave has been a challenge to get under control, we believe the long-term secular trends will drive the market higher by year-end and create a solid foundation for 2022.
Vietnam’s stock market has gone through a tremendous evolution in it’s only 21-years of existence, especially in the last several years. The stock market is following footsteps of other Asian Tiger countries and we remain optimistic on the multi-generational growth of the capital markets in Vietnam. In today’s piece, we share insights into the recent increase in participation by local Vietnamese investors, increase in market liquidity and new trading systems that are being installed to fuel the future growth of the Vietnam stock market.
As you may have read last week, the US Government announced that they will not impose tariffs on Vietnam. In today’s insight from Michael Kokalari, Chief Economist of VinaCapital, we highlight how this decision positively impacts the Vietnamese economy, market and currency. The Fourth Wave of Covid continues to be a challenge in Vietnam, especially in Ho Chi Minh City. Many experts believe the cases will peak in the next few weeks, though it is likely restrictions will be in place longer than that. The economy is being disrupted, but the secular trends absolutely remain in place and the corporate sector, including manufacturing, are working on solutions to keep their supply chains in place. We remain positive on the economy and the recent pullback in the market may be an attractive entry point for long term investors.