Vietnam's funds industry could be set for a boost after the World Bank backed its current economic reforms and forecast growth of 5.5% for 2024.
According to the World Bank’s Taking Stock bi-annual economic update, this growth will rise to 6% in 2025.
The forecast comes after Vietnam experienced a slowdown in 2023. The World Bank is also forecasting a turnaround in Vietnam’s real estate sector.
In addition, research from local fund manager Dragon Capital predicts that pension funds, institutional investors and wealth managers are set to up their investment in the country over the next three years.
According to its survey, 96% of respondents plan to increase their exposure to Vietnam over the next three years with 42% saying they intend to “dramatically” increase their exposure. In addition, 5% of respondents said they would be investing in Vietnam for the first time.
“The appeal of investing in Vietnam is clear; it offers both returns and diversification,” said Tuan Le, lead portfolio manager for VEIL.
He referenced the performance of the Vietnam index which has risen by 199% over the past decade as well as the country’s potential upgrade to emerging market status in the FTSE Russell and MSCI indexes, which “will pave the way for billions of pounds to pour into Vietnam’s capital markets” said Le.
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