
Vietnam is boosting FDI attraction, ready to open the door for “Eagles”
Everyone is preparing for a big shift in foreign companies due to the commercial war between the US and China. Vietnam is considered Asia’s bright spot
Vietnam has managed to repeat its success of containing a virus outbreak again, and that’s helped drive the nation’s stock market to become Asia’s top performer this month.
The benchmark stock index has rallied 13% in May, driven mainly by local investors as foreign funds pull money out from risk assets. The local currency has rebounded more than 1% after sliding to a record low in March during the global selloff.
“We are invested and continue to look for good stock specific stories,” said Joshua Crabb, a portfolio manager at Robeco in Hong Kong, as Vietnam offers a promising medium-term outlook.
Vietnam resorted to a quick rollout of tough measures to stem the virus, including aggressive contact tracing and quarantining more than 100,000 people, which won it praise from experts abroad. The International Monetary Fund forecast Vietnam’s economic growth to be among fastest in Asia this year, with the nation seen avoiding a recession that is set to sweep many of its Asian neighbors.
Back in 2003, Vietnam also won plaudits for its swift handling of the Severe Acute Respiratory Syndrome outbreak. It was the first country to be removed from the World Health Organization’s list of nations with local transmissions.
Here’s an introduction to Vietnam’s stock, currency and bond markets:
Vietnam’s stocks have been on the watch list for a possible upgrade to secondary emerging market from frontier by FTSE Russell since 2018. The nation is also seeking an emerging-market status from index provider MSCI Inc.
The Vietnamese dong has held steady against the dollar this month, after climbing 1.4% in April, which was the biggest monthly advance since 2008.
At just $58 billion in size, Vietnam’s local bond market is the smallest among economies tracked by the Asian Development Bank. Authorities aim to boost the size of the sovereign debt market to 45% of gross domestic product by 2030, from 20% last year. Corporate bonds are targeted to grow to 20% of GDP in a decade from 11%.
Foreigners own less than 1% of local notes as of March, according to the ADB. Officials expect government bonds to be included in international indexes by 2021
Source: Vietnaminsider.vn
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Everyone is preparing for a big shift in foreign companies due to the commercial war between the US and China. Vietnam is considered Asia’s bright spot
Vietnam’s investment environment received a lot of praise during the Vietnam-Japan online investment promotion conference.
After the first half of 2020, Vietnam has become a bright spot for many foreign investors to head to. There have been over 90 countries invested in Vietnam.