South East Asia’s most attractive economy offers deep value
Favorable demographics
Vietnam is home to the world’s 16th largest population and Southeast Asia’s fastest growing middle class. With ca. 100 million people population, growing at ca. 1 million people / year, Vietnam also offers highly attractive demographics (ca. 60% of the population is under 35 years old).
Persistent strong growth
The Vietnamese economy has delivered persistent strong growth for decades as the economy has opened up and benefited from a young well-educated and hard working population, becoming a global geopolitically neutral trade & FDI champion and high paced deregulation. Over the past 30 years, Vietnam has shown an average GDP CAGR of ca. 7% p.a. (including growing through the pandemic years).
Valuations in Vietnam remain low
Vietnamese public market valuation levels are significantly lower than regional peer markets, which is striking considering the nation’s strong underlying macroeconomic development as well as the steady performance delivered by its listed companies. On the 1-5 year horizon is a pivotal upgrade of the Vietnamese stock market from Frontier Market to Emerging Market, likely to render a once-in-a-decade revaluation trigger.
A geopolitically neutral trade champion
Vietnam is already a global champion, both in terms of free trade agreements signed as well as share of trade-to-GDP (far ahead of China for example). Vietnam is also increasing its competitiveness within high value manufacturing, currently the 3rd largest supplier of semi-conductors to the US as well as the fastest growing electronics manufacturer in the world.
Ongoing pro-market deregulations
The Vietnamese government holds a persistent track record of driving and implementing pro-market deregulations. This has served as yet another engine for the country’s remarkable and balanced economic rise over recent decades.