The Exclusive Club of Foreign Investors in Vietnam

Even though Vietnam is the world’s 13th most populous nation with one of the most promising economies, it remains the province of a relatively small group of members of the global investment community — and a golden opportunity for early adopters.

Last month Vietnam granted permission to just 52 foreign investors to trade in the country’s two fledgling public securities markets.  That brought the total of worldwide investors who hold trading codes in Vietnam to 15,588, including about 1,700 institutions. 

But the number of active traders is a fraction of the total because many investors have been discouraged as Vietnam’s short-term economic challenges have stalled investment returns; for example, the only Vietnam-focused fund traded in the US is down 40% this year.  Investors with a longer-term view see those circumstances, along with price-to-earnings ratios below 10, as signs of a good time to enter the market.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s