2012 Rally Expected for Vietnam Stocks

Vietnam’s public equities markets have been in the doldrums for a year because of the country’s daunting economic challenges, but the nation’s third largest brokerage (Thang Long Securities) predicts up to a 30% rally for 2012 as the economy rebounds.

In recent months, the government has focused on controlling inflation — and now aims for 6.5% growth and  single digit inflation next year.

Stock averages dropped 10% this year as Vietnam has the dubious distinction of leading Asia’s economies in inflation.  Meanwhile the overall price-to-earnings ratio dropped below 9, suggesting the country is due for a rally as the government seems committed to tight monetary and fiscal policies through the end of 2011.

More on Vietnam stock market outlook for 2012


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