Why investors should pay attention to Vietnam’s equity market

Vietnam’s equity market offers promising potential investors should pay attention to, says Eastspring Investments in a recent insight.

As per Bloomberg data as of 10 May 2024, the Vietnam Ho Chi Minh Stock Index (VNINDEX) delivered annualised returns of 8.5% p.a. (in USD terms) over the last five years, outperforming both the MSCI Frontier Emerging Markets and MSCI Emerging Markets Indexes.

“More importantly, Vietnam equities exhibit lower correlations than MSCI Emerging Markets to developed markets, potentially providing investors with enhanced portfolio diversification, although with greater volatility,” wrote Ngo The Trieu, CEO & Head of Investments, Eastspring Vietnam.

According to the International Monetary Fund, the country is expected to grow 5.8% in 2024 and 6.5% in 2025, up from 5% in 2023. The Head of Investments opines that this should help underpin the equity market going forward.

He highlights Vietnam’s manufacturing advantages, the country’s digital transformation, and the growing middle class as exciting opportunities for investors.

Read the complete insight at eastspring.com/lu.

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