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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“There is no top. There are always further heights to reach.” – Jascha Heifetz
Vietnam was one of the few countries in ASEAN to grow during the coronavirus pandemic of 2020, posting 2.9% growth in GDP, thanks to its widely praised efforts to contain the outbreak. With the first quarter of 2021 now behind us, we take a brief look at the economy and market before turning to our portfolio holdings.
Economic growth over the first quarter of this year reached 4.5% year-on-year (y-o-y) versus 3.7% y-o-y in 1Q20, driven by an expansion in manufacturing and construction (6.3% y-o-y in 1Q21). The government’s target of 6.5% annual GDP growth seems achievable and our Chief Economist discusses in more detail below the resilience of this growth, with consensus estimates for the market to deliver 24% earnings growth on average for 2021, while we expect holdings in our portfolio to deliver 36% earnings growth on average.