Diverse Your Long Term Capital & Invest In Vietnam
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.
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.
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.
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