This morning, November 7, in the first trading session of the week, Vietnam’s stock market continued to fall to the floor with stocks in real estate, construction, steel, textiles, retail, banking… In which, the largest selling pressure appeared in real estate and construction, many real estate stocks were completely illiquid, the stock price dropped deeply to the floor price and there was almost no transaction.
This was the fourth consecutive session of the stock market falling to the floor in the plunge that began in April until now. VN-Index once again lost the milestone of 1000 points, when it had lost many times before. Cash flow invested in securities continuously decreased sharply.
Besides, securities companies simultaneously increased margin lending interest rates, such as VNDirect, SSI, Yuanta… raising the margin lending interest rate from about 12% to nearly 14% a year. Of course, this also contributes to reducing the liquidity of the market. But the director of a securities company based in Ho Chi Minh City said: “Adjusting lending interest rates is sooner or later, because securities companies can’t go on forever when the State Bank of Vietnam has just raised interest rates twice a month.”
The capital mobilization channels of enterprises such as banks, securities, and bonds are deadlocked. Banks are tightening credit, especially real estate credit. The stock and bond markets crashed after a series of giants were accused of financial fraud, and the market’s confidence was completely shattered. The liquidity of the economy has frozen.
Faced with this difficulty in cash flow and confidence, the business situation of many businesses is in jeopardy. In recent days, many companies have cut labor and laid off thousands of workers at a time when there is just over a month left until the traditional Luna New Year.
Pressure and crisis will continue for the group of businesses whose bonds mature at the end of this year or next year. “Death” on the pile of assets is a completely possible scenario as it has happened in the past. On social networks today spreading the lament “the rich also die.” What will Vietnamese officials do to regain confidence in the market, to restore an economy that is collapsing according to the Domino effect, when people always have to witness the way the policy is run in the same way? Their “correction goes wrong.”
Over the past few decades, many Vietnamese people and families have become rich through the real estate business. Now, the real estate bubble has burst, the real estate giants, some go to prison, and some go bankrupt, the consequence, of course, is that individual investors also lose, lose capital, and many families family lost their homes, ruined.
In the past week, people in Saigon have witnessed the scene of Mr. Nguyen Huu Tri selling hundreds of red books on the sidewalk like selling vegetables. According to Mr. Tri, he is keeping about 100 red books of several dozen landowners who send him to sell. Mr. Tri shared, he is a real estate broker, and has been doing this for 7 years. Due to the recent sluggishness, slow transactions, and many real estate floors closed, there is no way to sell goods, so it is so mysterious, he tried to display the red book on the sidewalk to sell it. The red book depositors asked him to sell, and many people held the house to invest in land, now the land price has decreased but still cannot be sold and the bank interest has increased, they can’t stand it anymore. There are people who are the owners of dragon fruit gardens in Binh Thuan, but the price of dragon fruit drops, they also have heavy losses, so they have to sell their land. Not only Mr. Tri, this morning in Saigon, but there were also some more sidewalk stalls selling red books.
Facebooker Sen Ho expressed: “There are two ‘hot’ items on sale on the sidewalk recently, gasoline and a red book.”
When the economy collapses, it is always the low-income people who suffer the consequences, and are deceived time and time again. The greedy officials only care about their pockets and find all kinds of ways to cover up the truth, deceiving and covering up people with all the tricks and means they have in their hands.
Thoibao.de (Translated)
