Investors have returned to the stock market as the market has warmed up rapidly after a long quiet period. Analysts say making investment in stocks is now the most profitable investment channel, since deposits bring low interest rates and the gold market remains dim.

Hong Lam in District 7 of HCM City said that she and her husband, an overseas worker in South Korea, has the savings of $20,000. Lam has been depositing the money at the bank for several years, but she has found that deposits have low profitability and she wants to put the money into another investment channel.

Gold market: no price wave; bank deposits: low profitability

Purchasing gold and making bank deposits are the two most popular ways of making investments.

However, it is difficult to make profit at this moment if investing in gold, since the gold market remains quiet with few transactions in the lunar July, which is called the ‘month of forsaken spirits’. Very few investors choose to purchase gold in kind in this month, while they prefer purchasing gold on account.

According to kitco.com, the gold price has been hovering around $930-967/oz over the last month in the world.

As the dollar price is stable, the gold market does not have ‘big price waves’ for investors to make fat profit.

Meanwhile, making deposits at banks is always a safe investment channel. However, as it is safe, the profit it can bring to investors is modest. Commercial banks are now applying the interest rate of 8.5-9 percent per annum on average, profit only high enough for those investors who prioritise safety.

Property market in hibernation; foreign currency market sensitive

Investors are not thinking of putting money into real estate at this moment as the real estate market is now gloomy. As the market’s liquidity is now low, surfing investors, who aim at short-term investments, would not make investment in the sector.

Foreign currency was once considered a profitable business, when the dollar price increased steadily day after day. However, as the VND/US$ exchange rate has been largely stable, investors now do not have opportunities to make profit.

Stock market warming can bring many opportunities

Meanwhile, stock prices have been increasing considerably, so investing in stocks has become the choice of many investors.

The VN Index has increased by 16.3 percent over the last month, while the prices of many stocks have increased by 20-30 percent. GMD price increased sharply by 25 percent just within five days, CSM has increased 52 percent from 50,000 dong to 76,000 dong since August 11. As stock prices keep rising sharply in August, most stock investors have earned much more profit than they could have got from bank deposits or investments in gold.