South Korean investors have been turning their heads toward funds that invest in Vietnamese stocks, which have been boasting a strong presence among foreign funds, market data showed Thursday, as a summit between the leaders of the US and North Korea was held in the Southeast Asian country.

Sixteen South Korea-based investment funds established with a balance of more than 1 billion won (US$892,000) saw net inflows of 109.8 billion won over the past three months as of Tuesday, according to financial market researcher FnGuide.

Over the same period of time, other foreign equity funds suffered a net outflow of 126.3 billion won, the data showed. Among them only China-related funds recorded a relatively meager net inflow of about 2.3 billion won, while funds that invest in other major markets including the US, Europe, and Japan all marked a net outflow.

The Viet Nam-related funds drew 453 billion won worth of capital over the past year, a contrasting performance to other foreign equity funds that lost 406.8 billion won overall, according to data.

The funds have turned in solid performances in recent months, with the products’ average rate of return in the past three months amounting to 6.13 percent. The rate grew even further to 8.74 percent in recent weeks.

Viet Nam’s benchmark VN-Index rose 11 percent from the beginning of the year, which is a sign of recovery from the 9 percent annual loss it dealt with last year, from uncertainties stemming from the US-China trade war coupled with financial instabilities of emerging economies.

The index had surged 48 percent in 2017, marking it Asia’s top performing stock market of the year.

Last year, the country‘s gross domestic product expanded 7.08 percent on-year, marking a 10-year high.

“Though it is a little difficult to say that it is the perfect time for bargain hunters to invest in the Vietnamese market, the worst of times have passed and it is a good time to prepare for a market rebound,” said Lee Chang-min, an analyst at KB Securities, adding that it would be safe to keep a diversified investment portfolio in a long-term perspective.— The Korea Herald