Today, I visited VinaCapital, an asset management group. This firm has multiple funds that it uses to manage money for investors. It works a lot with transforming foreign investment into projects for Vietnam’s infrastructure. It also educates Vietnamese citizens about savings and investment, since the idea of someone taking their money with the promise that they will get more back later does not make as much sense to them as it does to Americans. Also, they do not believe investment is worth the risk of losing their money if the markets do not go the way they had hoped.
Vietnamese people can choose to invest in the stock market if they wish; however, there are limits since the government plays a huge role in the corporations in Vietnam. Also, due to regulations, 70% of a company in Vietnam must be owned domestically. The government puts caps on foreign investment in order to artificially slow down the growth of Vietnam’s economy, since faster growth yields greater inequality and therefore civil unrest.
The loosening of laws regarding investment in Vietnam and its move towards ideals of capitalism have allowed VinaCapital to operate more efficiently in recent years. In turn, the increase in investment that has followed has greatly improved the country. Asset management groups such as VinaCapital play a crucial role in the rapid development that is occurring in Vietnam.