return icon Vietnamnet.vn

Vietnam offers tremendous investment opportunities: VinaCapital

Consumer goods, health care, energy, construction materials, infrastructure, and technology are among the sectors with enormous potential for investment in Vietnam once the COVID-19 pandemic subsides, an expert has said.

Vietnam offers tremendous investment opportunities: VinaCapital hinh anh 1

The consumer goods sector is among the most promising for investment in Vietnam

 

 

Don Lam, co-founder and CEO of fund management company VinaCapital, recentlyspoke to a group of Republic of Korean investors through video conferencing about Vietnam’sefforts to manage the outbreak, how the pandemic would affect the economy andinvestment opportunities now and post-pandemic.


“We have always preferred those sectors that are benefiting from Vietnam’s domesticconsumption, which is driven by several factors including urbanisation, youngdemographics, better jobs and high incomes, and a growing middle class.”

The consumer discretionary sector had traditionally seen the highest growthsince people with more money in their wallet spend it on dining out, consumerelectronics, jewellery, and others, he said.

“Although there is a short-term hit from the outbreak, we can continue toexpect the sector to resume strong growth.”

Health care is another sector benefiting from the growing middle class sincethe public health care system is expanding yet overburdened.

Private health care is expanding, enabling some people who previously wouldhave gone to Bangkok or Singapore for treatment to get it at home today,according to Lam.

Energy is another promising sector, with demand outstripping supply, requiringthe country to import from neighbouring countries.

"LNG and renewables are the future," he said.

Domestic manufacturing, with companies that are involved in infrastructure orcatering to the needs or desires of the growing middle class, is also aninteresting sector as is technology, according to Lam.

Vietnam has been going through a tech boom in the past few years, withstart-ups working in a wide range of areas like fintech, AI, real estatetechnology, and logistics.

“Tourism will definitely make a comeback in 2021,” he said.

Vietnam could benefit enormously as it is seen as a safe haven amid theoutbreak and offers great value for money in addition to its beautiful sceneryand rich culture, he said.

Of course the recovery time depends on the global economic condition,transportation options and the medical situation, but now is a good time toinvest in the sector, according to Lam.

The stock market is also an option since its valuation has declined by 30-40percent during the outbreak, and many stocks are now attractive.

It now trades at a P/E of 10.3, the cheapest since 2012 and the lowest in theregion.

But he also shared notes of caution about investing in Vietnam, saying thereare some risks just like in any other frontier and emerging market.

"To mitigate the risks and prepare for the best possible outcomes,investors need to take a long-term view, do thorough due diligence, fullyunderstand the market, and have a trusted local partner," he said.

"The days of 'fast money' are over and patience is important whenoperating in Vietnam," he warned.

"One of the biggest mistakes foreign investors make is that they assumeall of Southeast Asia is the same, but Vietnam is not the same as Thailand,Indonesia or Malaysia, and each country has its own development strategies andown way of working," he said.

Successful foreign investors would be those who tailor their products, servicesand workplaces to Vietnam.

The global economic recovery would take time, but Vietnam was well-positionedto rebound once the COVID-19 outbreak is under control, with revised forecastsstill ranking Vietnam among the fastest growing economies in the world, headded.

“The opportunity here is virtually endless.”/.VNA

MORE NEWS

HCM City faces shortage of teachers at all levels

The Ho Chi Minh City People’s Committee has held a press conference to provide information about socioeconomic issues and epidemic prevention and control in the city.

Female People's Army officer works at EU Training Mission in Africa

Of the seven officers of the Vietnam People’s Army sent by the President to international missions, Lieutenant Colonel Vu Thi Lien is the first officer performing duties at the European Union Training Mission in Central African Republic (EUTM RCA).

VIETNAM NEWS HEADLINES FEBRUARY 4/2023

Minister requests fruitful cooperation in defence industry with other countries

Vietnamese cyber users advised to be cautious about ChatGPT registration

ChatGPT has recently been so popular in various fields. Since there are limits in ChatGPT registration from Vietnam, Internet users here are warned to be careful to proceed with the process to avoid being scammed.

2-3 more submarine fiber cable routes needed for Vietnam

The Vietnam Internet Association’s (VIA) Secretary General Vu The Binh said Vietnam needs at least two or three more submarine fiber cable routes in the next five years to serve mounting demand.

Vietnam still approves use of Covid antibody treatment

Vietnam still approves use of Covid antibody treatment Evusheld as it is still effective against subvariants circulating in the Southeast Asian country.

Former Coast Guard generals accused of embezzling $2.1 million

The crime allegedly started in 2019 when the Vietnam Coast Guard’s Department of Technology was allocated VNĐ150 billion (US$6.3 million) to purchase equipment.

Transport Ministry told to disburse VND94 trillion in 2023

The Government has tasked the Ministry of Transport with disbursing nearly VND94.2 trillion of public investment in 2023, up 1.7-fold against the 2022 figure and 2.2-fold versus 2021.

Banks pumped VND800 trillion into real estate in 2022

As of December 31, 2022, the outstanding loans provided to the real estate sector had reached VND800 trillion, while the figure was VND700 trillion by the end of 2021, said the Ministry of Construction, citing SBV’s (State Bank of Vietnam) figures.

Finance Ministry suggests taxing land and buildings separately

The Ministry of Finance has proposed developing a new property tax law to separate the tax on land from that on buildings.

Vietnamese movies earn over VND350 billion during Tet

Vietnamese-made films tallied more than VND350 billion in ticket sales in the first nine days of the Lunar New Year, between January 22 and January 30, according to the independent analytical website Box Office Vietnam.

Nguyen Trong Hieu's music video in finals of German Eurovision Song Contest

In a landmark moment for Vietnamese music, Nguyen Trong Hieu, winner of Vietnam Idol 2015, has announced that his latest music video has made it to the final eight in the German Eurovision Song Contest (ESC).

Vietnam's tourism revenue reaches VND46 trillion in January

Vietnam’s tourism industry generated around VND46 trillion in revenue this January, with a surge in domestic and international tourist numbers, according to the Vietnam National Administration of Tourism.

Vietnamese consume nearly 60 tons of gold in 2022

Vietnamese consumers bought 59.1 tons of gold, representing a year-on-year increase of 37 percent, the fastest increase in Southeast Asia, according to the World Gold Council.
back_to_top