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
“All sunshine makes desert.”
We ended the first half of the calendar year on a mixed note. On the one hand, Vietnam’s 4th COVID wave is taking its toll on domestic economic and social activities, with almost 40,000 new cases reported since this latest outbreak was first detected in late April 2021. On the other hand, against this negative headline the stock market continues to outperform the region, up 6.1% month-on-month (m-o-m) and 27.6% calendar year to date, in USD total return basis ($TR), driven by record levels of liquidity, with average daily turnover exceeding USD1.3 billion (+13.6% m-o-m) by the end of June 2021.
The economy remains resilient and for the first half of 2021, GDP grew by 5.6% y-o-y, and while the Government continues to forecast a 6.5% GDP growth for 2021. Our in-house research team is suggesting that in a worst-case scenario, a prolonged lockdown could shave up to 1% off GDP growth to 5.5% for the year. Our macroeconomic commentary below and recent note from our Chief Economist delves deeper into our outlook for 2H21.