VanEck analyzed Vietnam's transition from a "frontier market" to an "emerging market" and pointed out the reforms that have helped Vietnam grow dramatically.
The German website asiafundmanagers.com on February 29 quoted a report by the US investment management firm VanEck, saying that Vietnam could be an attractive investment destination for investors looking for growth opportunities outside traditional emerging markets. In a recent in-depth market analysis report, VanEck analyzed Vietnam's transition from a "frontier market" to an "emerging market" and pointed out the reforms that have helped Vietnam grow remarkably. Mr. John Patrick Lee, Director of Products at VanEck, commented: "Vietnam's economic reforms have created a positive cycle: reforms boost exports, exports boost economic growth, thereby boosting domestic demand. This trajectory has positioned Vietnam as a dynamic and integral part of the global economy, with its domestic market continuing to show strong growth potential." Mr. Lee also pointed out that Vietnam's economic growth is driven by a young and growing population, with more than 60% of the population under 30 years old and a literacy rate of over 90%. This advantage is fueling domestic demand as the middle class grows with increasing disposable income. Compared to other emerging markets, Vietnam's private consumption-to-GDP ratio is at an average level. Strong domestic demand helps Vietnam withstand external challenges, including protectionist policies from major trading partners such as the US and economic slowdowns from other countries such as China. Referring to the stock market, VanEck believes that Vietnam is a new opportunity that investors should consider carefully. Mr. Lee emphasized: "Despite macro shocks including the COVID-19 pandemic and economic issues in China, Vietnam's stock market has outperformed emerging market benchmarks since 2018." Mr. Lee sees huge opportunities from stocks in the financial, real estate and consumer staples sectors./.
(Vietnam+)
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