Tech-aware Vietnamese youth redefine the investment sector landscape
In the dynamic landscape of Vietnam's economy, a new generation of investors is making their mark on the stock market. With the widespread adoption of web trading and mobile trading platforms, stock trading has become more accessible and convenient than ever before.
The Vietnamese stock market is showing signs of entering a new growth phase, driven by rising investor confidence, sector-specific momentum, and renewed foreign capital interest. This growth is particularly evident among the younger generations, with a significant number of new market participants being from Gen Z and Gen Alpha.
Nguyen Van Hau, born in 2000, and Nguyen Thuy Linh, born in 2001, are prime examples of this trend. They choose to invest in stocks not only for the profit potential but also for the opportunity to build their financial analytical thinking.
Young investors are quick to adopt modern financial tools, including investment apps and AI, to analyze and trade securities. This proactive approach, identified by Tran Thang Long, head of research at BIDV Securities Company, is a key characteristic of the younger and more dynamic investor generation in Vietnam.
Combining direct investment with fund-based products, such as ETFs and actively managed funds, can help balance flexibility with professionalism for these young investors. These investment funds offer more options for young investors to gain exposure while mitigating risks with the help of professional fund managers.
However, with the ease of access to the stock market comes the need for discipline and knowledge. Instead of chasing 'golden timings', young investors should focus on maintaining investment discipline and steadily building their knowledge. This shift in investment mindset towards stocks is becoming increasingly evident.
Access to investment knowledge has improved significantly, thanks to online resources, community forums, and specialized courses. Online platforms are being used by younger generations to invest in the stock market, making it easier than ever for them to learn and grow as investors.
Vietnam's economy is posting impressive growth, with per-person income reaching $4,500-$5,000 per year. As a result, stocks are becoming a more attractive alternative to traditional investments like real estate or gold due to their high liquidity, low capital entry requirements, and broad profit potential.
The shift towards the stock market is not only driven by the allure of potential profits but also by the low bank interest rates. Many investors, particularly the younger generation, are turning to the stock market and other more flexible investment channels in search of better returns.
The stock market contributes to creating a rich and sustainable investment ecosystem, demonstrating its role as a medium- and long-term capital channel for the economy in the new era. An upgrade to Vietnam's stock market status from frontier to emerging would further improve the country's image, attract long-term capital flows, raise market standards, and promote institutional reforms.
As of July 2021, the total number of domestic securities accounts in Vietnam reached 10.4 million, with the majority belonging to individual investors. While many young investors have yet to face significant market turbulence, concerns about their long-term risk management skills persist.
In conclusion, the Vietnamese stock market is experiencing a surge in interest from young investors, driven by convenience, profit potential, and improved access to investment knowledge. As these investors continue to grow and learn, they will play a crucial role in shaping the future of the Vietnamese economy.
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