As reported by the news site asiafundmanagers.com, the analysis said the country’s transition from a frontier to an emerging market and points to the reforms that have led to its remarkable growth.
“Vietnam’s economic reforms have created a virtuous cycle: reforms spurred exports, which in turn drove economic growth, leading to increased domestic demand. This trajectory has positioned Vietnam as a dynamic and integral part of the global economy, with a domestic market that continues to show robust growth potential,” said John Patrick Lee, Product Manager at VanEck, as quoted by the site.
Lee further pointed out that Vietnam’s economic growth is buoyed by its young and growing population. With over 60% of the population under 30 and a literacy rate above 90%, this dynamic is fostering a strong domestic demand driven by a burgeoning middle class with rising disposable income. Compared to other emerging markets, Vietnam’s private consumption ratio to GDP ranks it mid-range, higher than Saudi Arabia and China but lower than Brazil and the Philippines. This robust domestic demand offers Vietanm resilience against external challenges.
When it comes to the equity market, VanEck believes that Vietnam is an emerging opportunity investors should look closely at. Lee also said he sees the biggest equity opportunities in financials, real estate and consumer staples./.
VNA
