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
Keep calm… and carry on.
April closed with an (un)surprising new outbreak of community infection to mark the start of a long weekend holiday here in Vietnam, from 30 April to 3 May. Domestic travel increased significantly as Vietnamese took to the hillsides and beaches to enjoy the public holiday, particularly given the curbs that were in place earlier in the year. While the surge in travel was positive news for tourism-related industries, it increased the risk of wider community infection, which is a concern given the limited amount of advanced medical equipment needed to treat severe cases in the event of a large-scale outbreak.
As of the second week of May, there have been over 700 reported cases of community infections identified since the end of April, with hotspots flaring up around the northern and central provinces of the country, although fortunately there have been no additional reported fatalities (Vietnam’s COVID-19 related fatality rate is less than 1%, half-that of the global average of 2%). While we can certainly expect more cases, the rate of community spread appears to be in check, with the reported daily case numbers declining. Once again, the government has proven its ability to effectively manage community outbreaks.