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.