With strong GDP growth, a stable macroeconomic environment, increasing exports, and record levels of foreign direct investment, it is easy to see why Vietnam is considered among the world’s most exciting markets. Half of the population of 95 million is under age 35, and an expanding middle class has created a compelling domestic consumption story that has attracted the attention of companies from around the globe.

VOF gives investors access to a range of carefully selected investments in the listed and private companies that are participating in, benefitting from, and driving the sustainable growth Vietnam is experiencing today.

Latest commentary from our fund manager

“There is nothing in the world so irresistibly contagious as laughter and good-humour.” – A Christmas Carol by Charles Dickens

November saw a further easing of COVID-related social distancing measures in Vietnam, including the re-opening of certain non-essential businesses such as bars and cinemas. The country’s shift in approach from “Zero COVID” to “Living with COVID” was motivated by a realisation that economic immobility had a detrimental effect on people’s lives and social stability and was enabled by a drop in COVID cases as well as a sharp acceleration of vaccinations. As of the end of November, over 50% of Vietnam’s citizens were fully vaccinated compared to 34% in the Philippines, 39% in Indonesia, and 58% in Thailand.

The markets were buoyed by positive sentiment with the reopening of the economy, with the Vietnam Index (VN Index) closing the month up 2.5% in USD total-returns terms ($TR), and briefly reaching its intraday record high of 1,512 points on 26 November, before correcting in the last few trading sessions of the month as concerns over the new COVID-variant prompted a global market sell-off. As at the time of writing, Vietnam has yet to record any cases of the Omicron variant, but the government remains vigilant.

Domestic retail investors continued to drive market performance with a record-high of over 220,000 new securities account openings in November, a surge of 70% compared to the previous month. On a year-to-date basis, 1.3 million new accounts were opened, which is 3.3 times higher than the whole of 2020. Consequently, the average daily trading value (ADTV) for November surged 46% month-on-month to a record high of USD1.8 billion per day; year-to-date ADTV for 11M21 reached USD1.1 billion, which is almost 4 times higher than the same period last year.

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