VIETNAM – THE NEW CHINA?
GDP (bn USD)
Labor Force (mn)
VIETNAM AT A GLANCE
Since the introduction of market reforms that opened up the country to foreign investment in the late 1980s, Vietnam has become one of the world’s fastest-growing economies, averaging annual GDP growth rates of 7-8% throughout the twenties.
Agribusiness production has nearly doubled over the past two decades, transforming Vietnam into one of the largest exporters of rice and shrimp globally.
Currently, Vietnam is in the midst of a transformation from a manual labor/agrarian-based economy towards one fueled by skilled-labor. Agriculture production has decreased 5% to account for 20% of GDP over the last five years, while the government has begun to provide incentives for hi-tech companies, such as Intel, Canon, and Samsung, to bring skilled manufacturing jobs to Vietnam.
Vietnam hosts two large stock exchanges; the Ho Chi Minh City Stock Exchange (HOSE), Vietnam’s largest stock exchange, and the Hanoi Stock Exchange (HNX). The third exchange, UPCoM (Unlisted Public Company Market) is the market at HNX for public companies not listed yet.
The Vietnam Fund has been created to offer investors high returns from growth in equity markets in Vietnam whilst offering a portfolio that has low correlation with global equity markets. The fund aims to achieve long-term capital appreciation for investors by capturing value in growth companies over the next 5-7 years predominantly targeting the small to medium size company segment. Vietnam has very compelling growth prospects with an attractively valued market that has significant room to grow.
Competitive labor costs combined with improvements in human capital as well as economic and trade environments present a strong case for market development. Vietnam has had a stable currency and increasing foreign reserves over the past two years and high GDP growth rates are being supported by fiscal and monetary policy.
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Manager Comments Q2 2020 – Vietnam Fund
The AFC Vietnam Fund gained 12.7% in April with a NAV of USD 1,558.09, bringing the return since inception to +55.8%. This represents an annualized return of +7.2% p.a. The Ho Chi Minh City VN Index in USD gained 17.0%, while the Hanoi VH Index rose by 16.2% (in USD...
- Industrials 33% 33%
- Consumer Discretionary 19% 19%
- Financials 13% 13%
- Consumer Staples 12% 12%
- Materials 10% 10%
- Cash 5% 5%
- Utilities 5% 5%
- Healthcare 2% 2%
- Communications 2% 2%
- Energy 1% 1%
Risk Level (1-7)
Minimal Init. Investment
Open Ended Investment Company
USD, ISIN code KYG0133A1673
$10,000 or lower when dealt via »»
Annual Management Fee
5 Business Days
30 Calendar Days
Up to 5%
Viet Capital Securities
Ernst & Young
Inquiring more information or subscription details - Vietnam Fund
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