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.
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January 2021: “I get knocked down, but I get up again…” – Tubthumping (I Get Knocked Down) by Chumbawamba
The new year got off to a flying start with the Vietnam Index (VN Index) extending already strong gains from December 2020, to reach its all-time high peak of 1,200 points by 13 January, up 9%. However, the last weeks of the month saw a brutal correction, with largest daily decline in the market’s history of 6.7% on Thursday, 28 January. For the month of January, the index was down 4.1% in simple terms (or 4.0% in total returns USD, TR$). Fortunately, the market has found some more surer footing since then. The VN Index valuation is quite appealing now with FY21 P/E ratio (PER) at 13.8x and estimated earnings growth for 2021 of 17.7%.