The gold and dollar markets froze after the efforts by the government to eliminate the black markets. Meanwhile, the gloomy stock market has not changed in the last two years, and liquidity is low on the real estate market. People also do not want to make deposits at banks because of the low interest rates. Where to invest is puzzling everyone.

Loan in District 6 in HCM City related that when seeing the government making every effort to eliminate the black foreign currency market, thus forcing the dollar prices down, she hurried to sell 5000 dollars. “Prior to that, I bought the dollars at 22,500 dong per dollar, but I had to sell at 21,200 dong per dollar and suffered a big loss,” she said. “However, I do not know what to do with the sum of dong I got from selling dollars”.

A survey conducted by local newspaper VnExpress at the time before the government decided to restrict bullion gold trade, the majority of 47,000 voters (17,492) chose to invest in gold. However, they have changed their mind.

Thanh in Tan Phu District in HCM City related that he has sold 20 taels of bullion gold, because he feared that the gold will be unsellable if the government prohibits bullion gold trade. “However, I don’t know what to use the dong for. The dollar market is also frozen, and I feel unsecure purchasing jewelry,” he complained. After thinking, he has decided to make demand deposits at banks. He will decide what to do with the sum of money later, when the government’s policies on gold and dollar become clearer.

Meanwhile, Thanh Huong in Binh Tan District in HCM City also complained that she has 150 million dong in savings, but she does not know what to do with the money. Her husband told her to deposit at banks, but she remains indecisive because deposits can only bring a small profit of 14 percent per annum, and the inflation rate is still high (it was 11.75 percent last year).

“We planned to inject the money in gold or dollars. However, the markets are not stable because people are awaiting new policies,” Huong added.

Thanh Nam, a senior executive of a travel firm in HCM City, related that after many years of working and saving, he has a decent income. He has been advised to set up a private business of his own. However, after some consideration, he has decided to delay the plan to open a private business because the current conditions are not really favorable. However, after the most important decision has been made, he must answer to a new question: what to do with the saved money? “I will have to make deposits at banks, because there is no other choice,” he complained.

Dang Hao Quang, an independent analyst, said that people should analyze the situation in order to draw up the strategies suitable to them. Sometimes, the risks of some people are the opportunities of others.

“Those investors, who want to seek profits from investment channels but think it is not the right time to invest should make deposits at banks,” Quang said, emphasizing that this is the safest way to earn money.

He has confirmed that the dollar and gold markets have frozen after a series of measures to intervene with the market. Quang thinks that people should wait for management agencies to take further steps towards decisions. As for the stock market, Quang said, as Vietnam has deeply integrated into the world, all of the happenings in the world market will certainly have effects on the domestic market. Meanwhile, the recent rapid-fire bad news, including the exchange rate adjustment, petroleum price increase, and electricity price increases are causing stock prices to decrease.

“In fact, there are still opportunities for securities investors in this year. However, small investors should only join the market after May 2011,” Quang said. He thinks that the VN Index would continue the downward trend in the time to come, hovering around 410-520 points.

Quang believes that real estate is a highly profitable investment channel. However, the problem now is that the government, prioritizing curbing inflation, has decided to restrict the capital flow to the market. Therefore, those people, who have profuse capital, should inject money in the real estate market. Meanwhile, those, who have to borrow money, should not.

Agreeing with Quang, another expert said real estate is always a good investment channel, especially if people investment in low cost and medium class houses. He said that the real estate prices have bottomed out, since many speculators, who borrowed money to buy houses, have to sell houses at this moment to pay debts. Therefore, it is the right time to buy land or houses.

C. V