Perception A: Growing optimism about investing in Vietnam

Perception A: Growing optimism about investing in Vietnam

11 januari 2024

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Vietnam

Almost nine in ten (88%) global equity and emerging market investors believe investing in Vietnam will become more attractive over the next five years, with 23% predicting its attractiveness will increase dramatically, according to new research from Dragon Capital, Vietnam’s oldest and largest fund manager.

The new study with professional equity investors at pension funds, family offices, insurance asset managers and wealth managers, reveals that this positivity is due to a number of factors, including Vietnam’s exports, GDP growth and its ability to forge beneficial economic partnerships.

The number one driver to continue to make Vietnam one of the fastest growth markets in Asia, rated by those surveyed, is it’s relatively large, well-educated labour force compared to many other regional competitors in Southeast Asia. This is followed by the fact that Vietnam has a relatively lower manufacturing wage costs relative to China and other key Asian countries.

The US and EU currently account for around 42% of Vietnam’s good exports, equivalent to $154 billion, but over half (54%) believe this will increase even further, accounting for between 45% and 50% in five years’ time.

This confidence about the future of Vietnam is also seen in positive predictions around its GDP growth, which has averaged 5.8% over the last decade. The study, carried out amongst professional global and emerging market equity investors who collectively manage around $1.64 trillion AUM.  Over the next five years, the majority (63%) of those surveyed forecast Vietnam’s average annual real GDP growth to be between 5% and 6%. One in seven (14%) think it will be between 6% and 7%, and 3% think it will be 7% or more.

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