Three major concerns of foreign investors' on Vietnam's capital market

CA - Macro factors, securities tax and possibility of capital withdrawal are three foremost concerns of overseas investors on Vietnam's capital market, said Alan T.Pham, chief economist at VinaCapital in the wake of business trips for investment attraction from the US and Europe.

First of all, much attention is given to the macro environment since galloping inflation could pose risk of the depreciation of assets. What is more, unstable foreign currency exchange may cost their investments a value loss of 5pct-10pct right after disbursement.

In addition, taxation policies on earnings from share trading as well as penalties regarding hot money flows are also what concerns prospective foreign investors.

Last but not least, whether the regulations on capital withdrawal are transparent and feasible is another concern. Specifically, the market liquidity together with the central bank's foreign currency reserves and the likelihood of access to these reserves for profit repatriation are what matters them most.