Did you know that Asia’s best performing market last year wasn’t China? It was indeed Vietnam!
The Ho Chi Minh Stock Index was up 48% last year and the Hanoi Stock Index was up 45.9%.
“What we are seeing is a coming-out party for Vietnam as the market re-rates and more foreign investors pile in,” says John Foo, a portfolio manager at Kingsmead Vietnam and Indochina Growth Fund in Singapore.
Foo added: “Investments in infrastructure is keeping export engine humming and the government remains committed to reforms and focused on growing the economy at close to 7% rate.”.
Hasnain Malik, head of research for the emerging markets investment bank Exotix in Dubai, says that “Vietnam is graduating away from investment-led growth to export manufacturing which generates jobs that in turn leads to consumption growth.”