Foreign paper hails Việt Nam as economic success story
HÀ NỘI — The UK's Daily Mail newspaper has published an article hailing Việt Nam as one of the world’s economic success stories.
Transactions at Maybank Kim Eng securities company. — VNA/VNS Photo
According to the paper, over the last three decades, the country has embraced the private sector, launched a stock market, benefited from large inward investment by large multinational corporations, and enjoyed 7-8 per cent annual economic growth.
This success has led fund managers and some brave British investors to see Việt Nam as an exciting investment opportunity. As a result, many Asian investment funds hold Vietnamese companies in their portfolios, and three specialist, high-risk trusts invest exclusively in listed and unlisted Vietnamese companies. Shares in these trusts are traded on the London Stock Exchange, the paper said.
The economy, like everything in the world, has been hampered by COVID-19 and blockades, but is back on track as restrictions have been lifted. This year’s growth is projected to be stable at 1.5 per cent, but next year it is projected to return to pre-pandemic high growth, it said.
Its stock market has also risen by more than 30 per cent this year, despite difficult economic conditions, showing the best performance across Asia. According to experts, the same may happen next year as Việt Nam’s corporate profits recover significantly.
The country’s growing stock market is also expected to benefit from the reclassification of early “frontier” markets into full-fledged emerging markets next year. If this happens, it will attract the attention of large international investors and push up prices.
Investor Waverton is a big fan. Brook Tellwright, Thailand-based Waverton fund manager, said that Việt Nam is now one of the most popular stock markets throughout Southeast Asia, alongside Indonesia and the Philippines. He states “However, we expect a strong economic recovery next year. This should improve corporate profits and help move the stock market forward”.
Emily Fletcher, co-manager of the investment trust Black Rock Frontiers, agreed. She said Việt Nam’s “explosive” economic growth leading up to the pandemic has created great opportunities for Vietnamese companies. She believed this will continue as the country enjoys a “substantial economic acceleration” after COVID-19 restrictions are lifted.