Invest In Vietnam: A Growing Tiger Economy

Diverse Your Long Term Capital & Invest In Vietnam 

 
 Ho Chi Minh City Vietnam, 2012

Ho Chi Minh City Vietnam, 2012

 

Invest in Vietnam and you are likely to see major capital growth upcoming decades

Besides my swing trading activities as described in earlier blogs, I also invest some of my capital for long term needs such as retirement. As part of diversifying a portfolio, it's worth considering Vietnam as a great investment opportunity.

Vietnam's capita per year growth has been among the fastest in the world and the socialistic republic has achieved growth per capita of 6% a year since 1990, just behind China, and this should be compared to the situation in 1980 where Vietnam was as poor as Ethiopia. 

 
 The founder of Businesslynch.com Antonios Papadimitriou in Vietnam 2012 

The founder of Businesslynch.com Antonios Papadimitriou in Vietnam 2012 

 

Vietnam brings low labor costs, increased openness to trade and a planned free-trade agreement with the EU which should further improve the economy. Public expenditure is at 6.3% of GDP and investigations show that 15 year old kids do equally well in maths and sciences as their German counterparts.

In addition of being a low cost competitor to China, Vietnam also shows a steady growth in the technology business with firms such as Samsung investing $300 Mn in research and development. Samsung makes 40% of its smartphones in Vietnam. 

While the population is getting older and shrinking in many western countries including Japan, Vietnam benefits from having an average age of 27 where 70% of the population is younger than 35. This means a lot of consumers and workers which is good for the national economy. 

 
 Beautiful rose garden, Ho Chi Minh City Vietnam, 2012

Beautiful rose garden, Ho Chi Minh City Vietnam, 2012

 

Extreme poverty has also dropped from 50% in 1950 to 3% today and the Vietnamese population is also better educated than economies with similar per capita income. However, structural reforms are needed in sectors such as agriculture which employs almost half of the labor force.

The government also needs to support a wider private sector led economy as part of attracting additional foreign investments and to encourage increased productivity. 

The currency has stabilised recently, and inflation has declined with a plunge in interest rates as well. One fund showing 20% discount to net asset value at present is Vietnam Opportunity Fund LSE:VOF.  

 
 Steady growth of Vietnam Opportunity Fund VOF:LSE. Source: Financial Times

Steady growth of Vietnam Opportunity Fund VOF:LSE. Source: Financial Times

 
 The Government debt to GDP is much lower compared with countries such as Japan, USA, German, and Greece. 

The Government debt to GDP is much lower compared with countries such as Japan, USA, German, and Greece. 

 The unemployment rate is one of the lowest in the world. 

The unemployment rate is one of the lowest in the world. 

Disclaimer: Businesslynch.com is not a regulated financial advisory business and above information shall be treated in educational purpose. Businesslynch.com is not liable for any investment or trading activities performed by its readers. 

 

Further Reading

World Bank | Financial Times | Trading Economics