Where does money flow in the context of economic recovery?

Cash flow in business is likened to a blood vessel in a human body. Maintaining a “healthy” cash flow is a guarantee for the survival and prosperity of any business and hence the economy as a whole.

This capital inflow is even more important in the context that the economy has just experienced many difficulties due to the COVID-19 epidemic. Which investment channel will the cash flow choose in the current economic and financial market context? That was the question asked in the discussion session with the topic “Cash flow trend” just conducted by VTVDigital.

At the discussion session, there is not a universal answer for all, because choosing where to invest depends on many individual factors of each investor such as: investment goals, risk appetite risk, market confidence…, but the guests made comments and analysis on cash flow opportunities for different channels so that investors can determine their investment direction. As with the stock market, cash flow is also more picky, not as easy as before.

Maintaining a “healthy” cash flow is a guarantee for the survival and prosperity of any business. (Illustration image – Photo: Investment Newspaper)

On average, in April, the transaction value was about 28,000 billion VND/session, down 12% compared to the previous month. With the stock market, economist Vo Tri Thanh said that after 2 years, the market had a time of high speculation, led by bad information. However, he said that now the market has started to see fluctuations in terms of fundamental issues.

Regarding the prospect of investment channels, the guests analyzed that the management agency has taken steps to purify the market, and short-term corrections are necessary for the market to develop in the long-term and sustainably.

Ensuring stock market discipline

“Regulatory agencies need to skillfully handle violations of the law to ensure market discipline. Second is the issue of communication and information, which is very important and transparent to narrow asymmetry. information on the market among related parties, especially between the seller and the buyer”, emphasized Mr. Vo Tri Thanh, an economist.

It is known that the volume of bonds of real estate enterprises has decreased sharply in recent years, even in April, no real estate enterprises issued bonds after the recent corrective actions of the management agency. physical.

The guests confirmed that these are only necessary adjustments of the market in the short term. In the long run, measures to control the market are the factor that helps to strengthen investors’ confidence and from there, the channel of capital mobilization through bonds will be a very important channel to lead capital for businesses to develop. develop in the long term.

Beware of private release

“When you issue it, you have to consider paying interest and on this day and now you have to pay the principal. We recommend that in the current context, bond issuers and buyers need to be careful because issuing bonds should be careful. Private placement is only for professional investors. We must comply with regulations to ensure risk reduction for both sides,” said Mr. Pham Hong Son, Vice Chairman of the State Securities Commission.

Regarding the cash flow in the real estate market over the past time, according to statistics, in 2021 as well as in the first quarter of 2022, real estate prices in many localities increased by 3-7% on average, some localities increased by 30%. In particular, the price of land plots in many areas increased very high, in some places increased by 30%, 50%, even over 100%, surpassing the usual logic. So, is it because the cash flow recently focused strongly on this investment channel?

According to experts, the cash flow chooses real estate because this is a more durable and safe market in the context of difficult business activities. (Illustration image – Photo: Investment Newspaper)

Real estate prices increased, the guests also said that it could be due to the cash flow choosing real estate because this is a more durable and safe market in the context of difficult business activities. The mentality of Vietnamese people is still that the more real estate you own, the better. Another reason is pointed out that the supply in the market is limited, especially the supply of housing because many projects have not been able to remove legal factors.

“It is necessary to increase the supply of all kinds of houses, especially houses for low-income people, suitable for people’s incomes. Procedures for investment and construction of houses are very complicated, but the current problem is the procedure. Therefore, we believe that it is necessary to speed up this process, besides proposing to correct policies, mechanisms and policies, and also suggest that localities pay more attention to dismantling, so that they can push forward. supply quickly, helping to reduce prices,” said Mr. Nguyen Manh Khoi, Director of the Housing Management Department – Ministry of Construction.

Cash flow focuses on thriving businesses

A very positive signal when it comes to the cash flow trend pointed out by the guests is that the cash flow will increasingly focus on thriving businesses, creating a strong foundation in the domestic market.

“With the trend of shifting production to densely populated areas, Vietnam is inheriting that, leading to very good disbursement in the first 4-5 months of the year as well as in 2021. If we continue to be okay. If the macro can be determined, the prospect of attracting capital inflows in the next 2-3 years is very positive.. Export is important, FDI is important, but it is not the leading criterion to guide the economy, the most important are the factors. internal factors,” said Mr. Le Anh Tuan – Investment Strategy Planning Manager, Dragon Capital Fund Management Company.

Businesses returning to operation increased by 60%

Regarding internal factors, the good news is that in the first 4 months of this year, the number of businesses returning to operation increased by 60% compared to the same period in 2021. The number of newly registered businesses in April was the same time. first reached the milestone of 15,000 businesses/month.

In the process of economic acceleration, there is very effective support from credit capital flow, which can be considered as a driving force to realize the growth of enterprises.

After the Government’s Decree No. 31 on support to reduce interest rates by 2%/year for businesses and cooperatives was issued, the State Bank quickly issued Circular 03 to guide in detail the perform. This is considered the basis for businesses to confidently expand their production scale.

Businesses expect to recover from the 2% interest rate support package

If supported to reduce interest rates by 2%/year, Ameii Vietnam Joint Stock Company will have more financial resources to purchase agricultural products, so there will be more lots of fresh lychees exported by enterprises.

“In terms of documents and procedures, it is also very desirable to simplify the process so that eligible businesses can quickly access and be disbursed early to use that preferential capital to promote export, bring many agricultural products of the country. Vietnam to the world”, said Ms. Ngo Thi Thu Hong, Director of Ameii Vietnam Joint Stock Company.

“As a business that has experienced the last 3-4 epidemics, we very much welcome the Government’s 2% support package. For us, 2% is a number that helps us reduce business costs. We can expand more offices, hire more personnel, which is a meaningful number for us,” said Mr. Bui Thanh Tu, Marketing Director of BestPrice Travel Company.

“We hope the State Bank of own financial resources to make a purchase and business plan,” said Ms. Do Linh Nham, Deputy Sales Director of Global Food Import-Export Joint Stock Company.

The loan supported at 2% interest rate is a loan in Vietnam dong, borrowed from the beginning of this year to the end of 2023. By the time of repayment of each term, banks will reduce the number of loans. interest on loans to customers.

The industries receiving interest rate support are those that have been heavily affected by the epidemic such as: aviation, tourism, agriculture… The funding source for 2% interest rate support is about 40,000 billion VND.

Digital communication conveys economic information accurately and in a timely manner

It can be said that the cash flow is ready to enter, but in order for the cash flow to go in the right direction, in the right areas that really play a role in economic recovery or in the opposite direction, how can policies support economic recovery? Reaching the right audience needs the role of communication.

With many information channels today, especially thanks to technology, communication is also easier… However, the role of communication must be strengthened even more, ensuring how to transmit information in the right way. , just won, because false information related to finance, securities, land… always causes bad consequences for the economy, investors and businesses.

Therefore, major media agencies always put accuracy and reliability first, such as Vietnam Television.

In the context of the economy recovering from the epidemic, the transmission of complete, accurate and timely policy information and economic information with great spread is even more necessary and important.

Within the framework of the conference organized by Vietnam Television, VTVMoney – Ecosystem specializing in economic information broadcast on multiple platforms, including economic information and programs being broadcast on television and All programs broadcast on VTV’s digital platforms have been officially launched.

Vietnam Television officially launched the economic information ecosystem VTVMoney.

The VTVMonney ecosystem was launched and received great support from market members, because of the expectation of providing a lot of complete, accurate, timely, and personalized information to the public anytime, anywhere. objectively reflect economic flows, contributing to the country’s economic development.

Immediately after the launch ceremony, the delegates attending the event also had opinions on the role of the media in general and of VTVMoney in particular in the media, especially in the post-COVID-19 context.

“What solutions does VTVMoney have to pull cash flow to farmers and rural areas? Because e-commerce is currently helping our agriculture a lot,” said Ms. Nguyen Thi Thanh Thu, Member of the Executive Board of the Association. Agriculture Digital Vietnam, said.

“The responsibility of the press agency at this time is to make a successful and powerful digital transformation to dominate and become an official source of information, crowding out unofficial sources of information, false information and fake news.” Mr. Le Quoc Minh, Editor-in-Chief of Nhan Dan Newspaper, emphasized.

“Regarding economic activities, the VTVmoney program, if you do it well, quickly, and rightly, this is also the official channel for the market and people to refer to, so that the rumors can be extinguished,” said Nguyen Anh. Nhuong Tong, Chairman of Yeah1, said.

In the current period of promoting economic recovery after COVID-19, the media, especially the media on digital platforms, play an important role and mission, as a bridge between people, businesses and people. policy makers, transmit economic information, timely and accurate policies, objectively reflect the movements of the economy, thereby creating psychological stability, maintaining motivation and earning income. attract investment into Vietnam and help direct cash flow more into areas that help economic recovery, especially focusing on businesses serving domestic supply and demand, creating the most jobs for the economy Vietnam, in order to soon return the economy to the high and sustainable growth trajectory as before the pandemic.

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