Vietnam is “more investable than many think,” with positive factors including accelerating FDI, a government push on infrastructure, structurally increasing purchasing power, and the rising profitability of the banking system, HSBC wrote in a note to investors.
- “Profitability, attractive valuations, strong balance sheets and market reforms point to the likelihood of a multi-year bull run,” HSBC said
- Likes Vietnam growth story, citing low inflation, a stable currency and healthy earnings
- Disagrees with common perception that Vietnam’s equity market is too small; says Vietnam now has 11 stocks with market cap of more than $5b vs 2 in 2015, while daily trading value has come close to $1b
- Says government has passed new laws that should reduce restrictions on overseas investors and put Vietnam in line for an upgrade to emerging-market status
- Says covered warrants and new diamond index are helping foreign investors gain exposure to companies at their foreign ownership limits
Vietnam is run by a communist party in the mould of China in the 1990s. They are primarily interested in economic development and raising living standards for the population. Dreams of global domination are not on the horizon. In fact, Vietnam’s primary concern is probably to remain independent and prosperous in an era of great power competition.Click HERE to subscribe to Fuller Treacy Money Back to top