Vietnam is an attractive investment destination among emerging markets

According to a recent article on the news site seekingalpha.com, opportunities will be open to investors when Vietnam's economy grows rapidly, far surpassing other countries in the Association of Southeast Asian Nations (ASEAN).

A website specializing in posting news about the financial market based in Israel said that the Vietnamese economy has many growth drivers, including high-tech manufacturing, natural resources and the relationship between the two countries. trade relations with major economies such as the US and China. According to the article, Vietnam is becoming increasingly important to global trade. There are many factors that show that Vietnam is an attractive destination for investors who want to diversify their investment portfolios into emerging markets.

One of those factors is the benefits of the domestically oriented economy that Vietnam is building. Instead of relying on external factors such as global market conditions, foreign demand and trade policies, a domestically oriented economy brings many benefits to countries transitioning from a Mainly export oriented.

Accordingly, economies driven by domestic demand are often more stable because they are less affected by international market conditions and political tensions. Domestically oriented economies are also often more diverse than export-oriented economies, which rely on cyclical exports; as well as being less dependent on external factors such as foreign demand, currency fluctuations, trade policies and commodity prices. In addition, when domestic demand is strong, domestic companies provide more and more services, thereby enhancing innovation and competitiveness.

The author also notes that domestically oriented economies have a number of weaknesses such as vulnerability to economic cycles, limited diversification and vulnerability to inflationary pressures. . However, it is argued that Vietnam has become a diversified economy, balancing export-led growth with growing domestic demand. Thanks to that, Vietnam has both strong exports and an increased domestic consumer base.

Vietnam's public equity ownership opportunities focus mainly on the financial sector, real estate and essential consumer goods. In the MarketVector Vietnam Local Index, the top 10 stocks are all in these sectors and also rely heavily on domestic revenue. This further strengthens the argument that Vietnam's economy has strong domestic demand.

Vietnam's domestic stocks have still increased compared to the average level of emerging markets since 2018. According to seekingalpha.com, with reforms in Vietnam's economic and market structure over the past decade, Investors should take a close look at this emerging opportunity.

According to baotintuc.vn