Portfolio Managers Main Concerns

Poor infrastructure and high real estate prices are the biggest worries of portfolio managers when they consider injecting money in Vietnam.

The infrastructure system, including roads, water and electricity items, were overused, and had become a barrier to national economic development. Traffic jams are becoming a big problem and has dampened the investment environment. This problem is now a top priority for the government.

According to the leaders of some investment funds, in 2006 Vietnam received $4.8bil worth of overseas remittance. However, the huge sum of capital has not been used to serve national economic development, but kept in the hands of people who make investment in land speculation. As a result, real estate prices have been skyrocketing.