Good Morning, Vietnam

Vietnam is a frontier market star. While it is often overshadowed by continental heavyweights China and India, or more established emerging markets such as Indonesia and Malaysia, Vietnam in our view is one of the best structural growth stories in the developing world.

Generally, frontier markets are countries with smaller, less liquid markets that often have reduced operational capabilities and limited foreign investor access. Vietnam has bucked this trend. A key recipient of foreign direct investment (FDI), Vietnam stands out among its peers as a large, more liquid market with 56 companies that have a market cap greater than $1 billion.¹

Resilient export economy

Thanks to a sustained export boom fueled by FDI, Vietnam is a well-positioned manufacturing hub, benefiting from supply chain relocations due to U.S.-China trade tensions. Attracting basic industries away from China and other emerging markets, Vietnam is increasingly moving into higher-value industries such as LED screen production. Substantial road, airport and seaport transportation infrastructure is being rapidly upgraded to cater to increasing export demand.