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

January 2019: Market lags as foreign flow slows

While many stock markets around the world registered sizeable gains in January (e.g., the S&P rose 7.8%), the Vietnamese market’s gain was comparatively muted at 2.0% in USD terms versus 8.7% for the MSCI Emerging Markets Index. Performance was not the only indicator that lagged as net foreign inflow during the month trailed regional peers. In 2018, Vietnam saw nearly USD2 billion in net foreign investment, the only country in Southeast Asia seeing such gains, despite the market declining similarly to its peers. This demonstrates how fund flows and stock market performance can sometimes be a contrarian indicator, as corporates and insiders chose to sell when the market was strong, as was the case for several large deals in Vietnam last year.

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