Rising Covid-19 numbers jitter Vietnamese Stock Market

— 07.07.2021

Vietnam’s rapidly rising Covid-19 numbers caused a strong sell-off at the very end of the trading day on Tuesday, with the VN Index dropping about four percent in less than half an hour. Local investors were nervous about the news of 1,000 daily infections and especially the situation in Ho Chi Minh City, where 600-700 cases have been detected in the last couple of days.

On Tuesday nervous investors pressed the panic button and took in their profits. Investors are worried whether there will be new restrictions in Ho Chi Minh City due to the rising number of infections. These new cases slow the economic growth and thus the reactions in the Stock Market are understandable, but this will most likely be temporary. As a whole the situation in Vietnam remains very good: the cumulative infection rate is just over 20,000 in a population of almost 100 million.

 

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