April 7, 2022
Vietnams stock market is looking like a safe haven among developing-nation peers, with a reopening of trade and tourism, accelerating economic growth and rising corporate earnings.
The benchmark VN Index is up over 1% this year, outperforming the nearly 8% decline in a MSCI gauge of Asia frontier market stocks. The index is 0.4% below an all-time high and could continue its climb despite elevated inflation and headwinds from the war in Ukraine.
Company fundamentals are one key reason for the optimism. Profit growth from the top 60 Vietnamese firms is expected to average about 23% this year on a free-float adjusted basis.
Investors are mulling the impact of Vietnam‘s border reopeningto foreign travelers after two years of Covid-related restrictions on the country’s economy. The government expectseconomic growth of as much as 6.5% this year, Southeast Asias fastest, as industries like manufacturing and tourism extend recoveries. Growth was about 2.6% last year.
OneProSpecial Analyst
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