Party leaders committed to an anti-Communist boost for the country’s private sector, to 55% from 42% of gross domestic product by 2025.
Nick Niziolek, head of global strategies at Calamos Investments, experienced the literal gaps in Vietnamese infrastructure on a prepandemic tour.
Pouring cash into improvements should enable the government to achieve its 6.5% to 7% annual growth targets while boosting profits for appropriately positioned companies, says Bill Stoops, chief investment officer at Dragon Capital in Ho Chi Minh City.
“New household formation in Vietnam is running at 80,000 to 90,000 a year, and supply at 60,000 to 70,000,” he says.
Shares have jumped by a third this year and can run further, says Sean Fieler, chief investment officer at Equinox Partners.
are up 20% year to date and still have upside, says Andrew Brudenell, lead frontier markets manager at Ashmore Group.
Market infrastructure also took a leap forward last year, when the government approved the online opening of brokerage accounts.
It also reflects frustration with what authorities haven’t done: untangle the web of ownership and trading restrictions that keep Vietnam classified as a frontier, not emerging, market.
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