Why Vietnam looks a better bet than China or India

Asian economies are seeing double-digit growth while the rest of the world remains mired in recession. But despite this rapid rebound, investors shouldn't get too carried away. Cris Sholto Heaton explains why, what to look for when investing in Asia - and what to avoid.

Last week's Economist cover hailed "Asia's astonishing rebound".

Asia's economies are growing at double-digit rates at a time when much of the rest of the world is mired in recession. But in fact, there's nothing astonishing about this. As I've noted many times in the last few months, Asia was always set to be the first out of recession as soon as the global economy stabilised, and was likely to rebound pretty quickly once the turn came.

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China (CSI300)52.8410.9331.3522.6525.667.891.733.33.26
China (HSCEI)31.316.1118.6915.5614.85.441.012.272.38
Hong Kong (HSI)22.216.5521.1417.2414.033.341.011.951.99
India (Sensex)24.968.0618.3517.8517.416.391.723.313.83
Indonesia (JCI)31.086.4830.0314.6516.343.851.242.592.41
Japan (Topix)29.4810.79-1.2841.1920.132.090.81.171.57
Malaysia (KLCI)20.678.6320.2616.8414.312.40.861.981.8
Philippines (Pcomp)17.268.7516.1713.3813.542.91.161.911.93
Singapore (STI)21.075.2719.7716.4613.172.150.781.521.84
South Korea (Kospi)34.526.9434.1414.1814.271.80.721.251.26
Taiwan (Taiex)95.37.7392.9323.0919.952.690.971.631.6
Thailand (SET)25.786.1325.2411.7612.542.320.811.41.74
Vietnam (VNIndex)46.37.8319.6417.5122.189.861.192.594.09
MSCI Asia155.368.88151.1526.2322.012.230.931.481.75
MSCI Asia ex Japan23.327.0822.517.91142.941.031.881.89
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China (CSI 300)3,204-4.2%
Hong Kong (Hang Seng)20,199-3.3%
India (Sensex)15,241-1.1%
Indonesia (JCI)2,334-2.2%
Japan (Topix)947-2.7%
Malaysia (KLCI)1,164-2.1%
Philippines (PSEi)2,720-4.6%
Singapore (Straits Times)2,545-3.3%
South Korea (KOSPI)1,581-0.7%
Taiwan (Taiex)6,655-5.9%
Thailand (SET)645-1.5%
Vietnam (VN Index)519+2.4%
MSCI Asia100-2.2%
MSCI Asia ex-Japan420-3.0%
Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.