Investors excited by Vietnam - the “mini-China”

Vietnamese stocks have produced the best gains in Asia so far this year, with investors enticed by Vietnam’s ‘mini-China’ story”.

Vietnamese stocks have produced the best gains in Asia so far this year, says John Reed in the Financial Times, with the benchmark VN Index up 17%. A flurry of flotations has helped drum up excitement, but investors have also been enticed by Vietnam's mini-China' story". It's a communist state embracing the market and the global trading system, while "positioning itself as a hub for foreign manufacturing".

The long-term outlook is compelling. Vietnam, "unlike some of its neighbours heading into a demographic slump", has a young population driving demand for everything from beer to budget travel. As a result, the economy grew 7.4% at an annualised rate in the first quarter of this year. Its exports now exceed those of Indonesia, an economy almost five times its size.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Alice grew up in Stockholm and studied at the University of the Arts London, where she gained a first-class BA in Journalism. She has written for several publications in Stockholm and London, and joined MoneyWeek in 2017.