Vietnam has been considered one of the fastest-growing economies in Asia. Despite the tough market environment of the past three years, the Vietnamese economy grew by roughly 7.7% in 2023’s second quarter and their equity market experiencing constant inflow of capital from international and domestic investors.
‘We expect GDP growth of around 6.1% to 6.3% for the year as a whole,’ says Mario Timpanaro, director and fund manager at Aquis Capital. ‘The reopening of China will generate new momentum in Asia. One of the beneficiaries of the ChinaPlusOne Strategy is Vietnam. In our opinion, the tourism and consumer sectors will benefit the most. We also expect Vietnam to be upgraded in the MSCI Emerging Markets in the next one to two years.’
Buoyed by the expectations of an upgrade from frontier to an emerging market, Vietnam should see an enormous boost to its domestic market.
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