South Korean overseas investment funds have sharply increased their investments in Vietnam and India
Posted by Emvertex
Investment money, unhappy with low interest rates and low growth in South Korea, is pouring into emerging Asian markets. Asean and India, with Vietnam at the centre, are the main destinations. These markets have greater volatility, higher investment risk, but at the same time the return on investment is relatively high.
On June 17, association of South Korea’s financial investment, according to south Korean domestic investors to invest in the amount of investment funds overseas there’re a total of 3.16 trillion won (will be subject to the end of may) inflows into Vietnam, is ten times more than the end of 2015 (310 billion), compared with the end of last year (2.84 trillion), in five months increased 320 billion won (11%).
More than 1 trillion won has been invested in the Indian market. By the end of may, won1.22tn had flowed into the Indian market, up won310bn (34 per cent) from won910bn at the end of 2015.
Excluding Vietnam and India, plus investments in Singapore (won690bn), Indonesia (won310bn) and Thailand (won120bn), the total for the five Asian countries reached won5.5tn (at the end of may), up nearly won4tn from won1.58tn at the end of 2015.
By contrast, money invested in China was won4.54tn at the end of last month, down won1.43tn from won5.91tn at the end of 2015.
Investment income of each district exists big difference in different time. FNGUIDE, a financial-information firm, analysed the average returns of investment funds in three countries, including China, Vietnam and India, as of June 14th.
According to the analysis, only India (7.7 per cent) made gains in the most recent year, while China (-12.54 per cent) and Vietnam (-9.49 per cent) both posted losses. Extending that to the last two years, Vietnam has the highest yield (13.43 per cent), followed by India (8.41 per cent) and China (7.21 per cent).