Vietnam is expected to experience a GDP growth rate of between 6% and 6.5% in 2024, according to CNBC. This growth rate can be attributed to robust imports and exports, as well as stronger manufacturing activity. Furthermore, the Vietnamese market’s optimism has led to a more than 14% increase in foreign direct investments in 2023 compared to 2022.
Andy Ho, the Chief Investment Officer of VinaCapital Group, believes that now is the opportune time for investors to enter the Vietnam stocks market.
“Over the next 6 to 12 months, Vietnam will be a promising market as valuations are inexpensive, at about 11 to 12 times earnings for 2023. This is approximately a 20% to 25% discount to the regional average,” stated Ho to CNBC. “The average daily trading volume in Vietnam has increased from 500 million USD a year ago to about a billion dollars daily today,” he added.
Ho also expressed bullish sentiments towards Vietnam’s e-commerce sector.
“People are starting to realize that when they have a substantial amount of liquidity, they do not want to hold it in banks due to unattractive interest rates. Instead, they are exploring other investment options,” Ho explained.
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| A worker checking packages at a warehouse in Vietnam (Photo: tinnhanhchungkhoan.vn) |
On the other hand, Tyler Nguyen, the Vice-President and Head of Institutional Equity Sales at Maybank Securities Vietnam, shared that his firm has been experiencing 20-30% year-on-year growth, while e-commerce only accounts for 2-3% of retail sales. When asked about Vietnam’s potential inclusion in MSCI’s list of emerging market economies, Nguyen stated that the country is still “at a very nascent stage” but there may be positive developments in 2025.
Earlier this month, the British consulting center CEBR released a forecast that highlighted Vietnam’s long-term positive economic prospects. The forecast proposed that Vietnam can achieve its goal of becoming a high-income country by 2045. CEBR particularly commended Vietnam and the Philippines for their exceptional growth in repositioning the global value chain, implementing internal reforms, and enhancing workforce productivity.
Stock market remains anxious amid coronavirus outbreak
The outbreak of the acute respiratory disease caused by the novel coronavirus has hit Vietnam’s stock exchange over recent days as shares hit a three-year low.
Vietnam’s e-commerce market to rocket to 13 billion USD in 2020
The size of Vietnamese e-commerce market is likely to hit 13 billion USD this year thanks to a large percentage of young residents and internet subscribers, according to insiders.
PM meets with businesses nationwide
A teleconference between Prime Minister Nguyen Xuan Phuc and the business community took place on May 9, aiming to address businesses’ concerns, boost production and restart the economy in response to the COVID-19 pandemic.
Prime Minister holds dialogue with enterprises
A dialogue between Prime Minister Nguyen Xuan Phuc and the business community took place on May 9, aiming to address businesses’ concerns, boost production and restart the economy in response to the COVID-19 pandemic.
Production recovery strategy post-COVID-19
The impact of the COVID-19 pandemic on Vietnam’s production is clearly evident in each specific industry. The country, however, has also been presented with many golden opportunities as it restores and restarts its economy.
