CNBC: Vietnam to Become One of Asian-Pacific's Best Positioned Markets in First Half of 2024

The Southeast Asian country can expect to see a GDP growth rate of between 6% and 6.5% in 2024. According to CNBC, the two main reasons for this growth rate are the robust imports and exports, as well as stronger manufacturing activity. The optimism in the Vietnamese market has also led to a more than 14% surge in foreign direct investments in 2023 compared with 2022.

Chief investment officer of VinaCapital Group Andy Ho believed this is the right time for investors to enter Vietnam stocks.

“Over the next 6 to 12 months, Vietnam will be a good market as valuations are inexpensive at about 11 to 12 times earnings for 2023. That’s about a 20% to 25% discount to the regional average,” Ho told CNBC. “The average daily trading volume in Vietnam has gone from 500 million USD a year ago to about a billion dollars daily today,” he said.

Ho also added that investors should also be bullish on Vietnam’s e-commerce sector.

“People are beginning to recognize that when they have a lot of liquidity, they don’t want to put it in the bank because the interest rates now are becoming uninteresting, and then looking at other options to invest," said Ho.

A worker checking packages at a warehouse in Vietnam (Photo: tinnhanhchungkhoan.vn)

On the other hand, Vice-president and Head of institutional equity sales at Maybank Securities Vietnam Tyler Nguyen shared that his firm is experiencing 20-30% year-on-year growth every year, while e-commerce accounts for only 2-3% of retail sales. When asked about Vietnam’s possible entry into MSCI’s list of emerging market economies, Nguyen said the frontier economy was still “at a very nascent stage” but “we might see good news in 2025".

Earlier this month, the British consulting center CEBR released a forecast showing that Vietnam's economy is facing a very positive prospect in the long term. Vietnam can achieve its goal of becoming a high-income country by 2045, the forecast proposed. In particular, CERB evaluates that Vietnam and the Philippines are two Southeast Asian countries that showed outstanding growth in repositioning the global value chain, adopting internal reforms, and increasing the productivity of the workforce.

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