The article said such growth is underpinned by diverse sectors, from high-tech manufacturing to natural resources, and bolstered by significant trade relationships, especially with the US and China.
“Vietnam's economic reforms have created a virtuous cycle: reforms spurred exports, which in turn drove economic growth, leading to increased domestic demand. This trajectory has positioned Vietnam as a dynamic and integral part of the global economy, with a domestic market that continues to show robust growth potential,” wrote the article.
It said Vietnam has grown into a well-diversified economy that strikes an attractive balance between export-led growth and growing domestic demand that enjoys robust exports in addition to a growing domestic consumer base.
Vietnam's public equity opportunity set is heavily weighted towards financials, real estate and consumer staples. In the MarketVector Vietnam Local Index, the top 10 holdings are skewed towards these sectors, and are also heavily dependent on domestic revenues. This also lends credence to the argument that the Vietnamese economy enjoys robust domestic demand.
Local Vietnamese stocks, meanwhile, have outperformed broad emerging markets benchmarks since 2018. The article assessed that given Vietnam's economic and market-structure progress over the past decade, investors should look closely at this emerging opportunity.
