Contrarian British financial columnist Cris Sholto Heaton contends that now is the time to invest in Vietnam, partly because nobody has a nice word to say about the country. He says Vietnam is turning the corner after government policies had led to excess credit growth, Asia’s worst inflation, and loss of confidence in the currency.
Now, he argues, the Vietnam market offers exceptional value with price-earnings multiples well below 10 (and forecast as low as six for 2012) because of pessimism. Earlier this month the Financial Times highlighted Vietnam’s “growing inequality, soaring inflation, a lack of confidence in the currency and fears of a banking crisis.”
Heaton says Vietnam is a good investment now for two reasons: (1) The government has taken the actions needed for things to improve; and (2) the market is very cheap (for those who have patience).