"Just Invest" - Interview with Nguyen Ba Lam, Finmex Lead Analyst

Asia was one of the first continents to recover from the first wave of coronavirus. Then the news mainly about China disappeared, as if no one in those areas had a second problem with the epidemic. Perhaps the declining amount of news from that part of the world has made us feel that COVID-19 is partially beyond our concern. I decided to ask the source and interview Nguyen Ba Lam, who agreed to tell a bit more about the current economic situation in his region and his investment ideas. First of all, we talked about the epidemic in Asia, about which regions have been seriously affected and what the economic prospects are in the near future. In addition, Nguyen tells a bit about the beginnings of the market. How to approach it and where to start. 

Nguyen Ba Lam, 26, is a financial analyst at Finmex and has been working in capital markets for over 7 years. He holds a master's degree in finance from the Kharkiv National Economic University. While still a student, he began to try his hand at trading on Forex market. Then he started working in brokerage firms in Kharkiv and Kiev as a financial analyst. He worked very well and his talent was noticed by foreign companies. He was invited to Vietnam to work at Finmex as Chief Financial Analyst. He works there to this day. Apart from analytical work, his main tasks include creating money management programs and trading strategies. Taking advantage of the fact that Nguyen works in Vietnam, in the interview I asked about several issues related to the pandemic situation in Asia. 

Thank you very much to Nguyen for his time, and I invite you to the interview. 

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At the outset, I would like to ask you, how do you think (and to what extent) the pandemic affected the economy in Asia?

The regional economy in East Asia and the Pacific slowed down somewhat in the past year by about 0,9%. However, the severity of the shock from the COVID-19 pandemic was uneven. In China and Vietnam, which successfully controlled the spread of the virus, it is estimated that GDP grew by 2% and 2,8%, respectively. This result was achieved thanks to the competent control of the spread of COVID-19, the restoration of production and exports. The fact that the state stimulated the economy was extremely important. The rest of the region suffered much greater losses.

Could you please name these specific regions?

Countries that have announced longer periods of isolation (lockdown and significant restrictions) coupled with a high proportion of infections in the country, such as the Philippines, have been hardest hit. An additional element of risk in all of this is the uncertainty of domestic policy, which particularly affected countries such as Malaysia, Thailand and East Timor. Lastly, I would mention countries that are heavily dependent on tourism (Fiji, Thailand, Palau, Vanuatu).

What are your expectations regarding the economic situation in the near future? 

The developing Asian sub-regions are expected to grow moderately this year, with the exception of East Asia, which is forecast to rebound strongly to 7% in 2021. It is also projected that Vietnam, which has been able to contain the pandemic with little human loss and economic growth, will record economic growth close to 6,7% in 2021.

What threats do you see in the context of the economic recovery? What can you expect during this phase?

The protracted COVID-19 pandemic remains the greatest risk of worsening the region's development prospects this year. It does not bypass most Asian countries. In contrast, other threats arise from geopolitical tensions, including the escalation of trade and technological conflicts between the United States and the People's Republic of China (PRC). Their intensity is additionally supported by various types of financial problems, which may be aggravated by a prolonged pandemic.

What can you advise people? How and where to invest in the stock market in this difficult period for everyone? Do you have your top instruments?

Personally, I prefer portfolio investments based on foundations. I lean on words Warren Buffettwho said that:

"When you buy stocks, you are buying part of the business, not just chips.".

During the first coronavirus outbreak in China (which gradually began to expand worldwide), my portfolio "only" dropped by less than 25%, which I cannot say for many of my industry friends who have lost huge amounts of money. People always want to make a profit in a very short period of time, so they use different tools to increase their profit potential and ignore the strong rise in risk in the markets.

Are you trading alone in the market? What was your profit in the last year?

Yes, I also trade on my own account on the market. In the last year, my profitability was, for obvious reasons, 174%, but this year we expect a profit of 60-70%.

Could you give some tips for beginner investors? What advice would he give them? 

Always invest in what you have analyzed yourself, and invest in what you think will be sought after and willingly bought in 10-20 years. To illustrate this, I will give a simple example based on the most famous company. I'm an iPhone user, so I have it in my wallet Apple shares. I think in 10-20 years most will be driving environmentally friendly vehicles, so I'm investing in Tesla or General Motors. 

Finmex is also an educational institution. How would you describe the investor education process? What do you think a beginner investor needs? Could you identify a specific path?

1. The most important thing is the will to develop in the field of investment
2. Patience and peace
3. Just invest 
4. Ability to read the main fundamental indicators 
5. Basic knowledge of mathematics and economics
6. And once again - a great desire to develop, to get to know the topic more and more deeply.

Thank you!